Kenya Treasury bonds · auction of 11 February 2019
Kenya bond auction, 11 February 2019: FXD1/2019/015 at 12.768%
The Central Bank of Kenya's bond auction dated 11 February 2019 was a re-opening of FXD1/2019/002 and FXD1/2019/015.
Bids came to KES 66.6bn against KES 12.0bn on offer (555% subscribed), and the Treasury accepted KES 23.4bn.
FXD1/2019/002 cleared at 10.328%, against a 10.701% coupon, with 2.0 years to maturity. Its previous sale, on 28 January 2019, priced at 10.701%, so the yield is down 37 basis points.
FXD1/2019/015 cleared at 12.768%, against a 12.857% coupon, with 14.9 years to maturity. Its previous sale, on 28 January 2019, priced at 12.857%, so the yield is down 9 basis points.
What this means for KES 100,000 of FXD1/2019/015
Worked from the published result · information, not advice
KES 5,786 every six months, after tax, for 14.9 years
At this auction KES 100,000 of face value cost about KES 101,068 (price 101.068 per 100), and the yield that implies is 12.77% a year. The coupon is 12.86%: KES 12,857 a year on KES 100,000 of face value, paid in two halves, KES 11,571 after 10% withholding tax.
Held to maturity (2034-01-09), that is about KES 172,532 in coupons, plus KES -1,068 loss between what you paid and the KES 100,000 repaid; roughly KES 171,464 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 | reopening | 10.328% | 10.701% | 2.0 | KES 50.20bn | KES 7.47bn | 101.049 |
| FXD1/2019/015 | reopening | 12.768% | 12.857% | 14.9 | KES 16.41bn | KES 15.96bn | 101.068 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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