Kenya Treasury bonds · auction of 28 January 2019
Kenya bond auction, 28 January 2019: FXD1/2019/002 at 10.701%
The Central Bank of Kenya's bond auction dated 28 January 2019 was a primary issue of FXD1/2019/002 and FXD1/2019/015.
Bids came to KES 102.0bn against KES 40.0bn on offer (255% subscribed), and the Treasury accepted KES 38.5bn.
FXD1/2019/002 cleared at 10.701%, against a 10.701% coupon, with 2.0 years to maturity.
FXD1/2019/015 cleared at 12.857%, against a 12.857% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of FXD1/2019/002
Worked from the published result · information, not advice
KES 4,548 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 10.70% a year. The coupon is 10.70%: KES 10,701 a year on KES 100,000 of face value, paid in two halves, KES 9,096 after 15% withholding tax.
Held to maturity (2021-01-25), that is about KES 18,129 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 18,129 in all after tax.
Sold before maturity, the price moves with rates: if yields rise, the bond is worth less; if they fall, more. The Central Bank’s minimum bid is KES 50,000. Compare with bills, funds and deposits after tax →
Results
By bond
| Bond | Sale | Yield | Coupon | Years left | Bids | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/002 | primary | 10.701% | 10.701% | 2.0 | KES 76.90bn | KES 23.77bn | 100.000 |
| FXD1/2019/015 | primary | 12.857% | 12.857% | 14.9 | KES 25.07bn | KES 14.72bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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