Kenya Treasury bonds · auction of 13 May 2019
Kenya bond auction, 13 May 2019: FXD2/2019/005 at 10.872%
The Central Bank of Kenya's bond auction dated 13 May 2019 was a primary issue of FXD2/2019/005 and FXD2/2019/015.
Bids came to KES 70.8bn against KES 50.0bn on offer (142% subscribed), and the Treasury accepted KES 58.5bn.
FXD2/2019/005 cleared at 10.872%, against a 10.872% coupon, with 5.0 years to maturity.
FXD2/2019/015 cleared at 12.734%, against a 12.734% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of FXD2/2019/005
Worked from the published result · information, not advice
KES 4,621 every six months, after tax, for 5.0 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 10.87% a year. The coupon is 10.87%: KES 10,872 a year on KES 100,000 of face value, paid in two halves, KES 9,241 after 15% withholding tax.
Held to maturity (2024-05-06), that is about KES 46,048 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 46,048 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2019/005 | primary | 10.872% | 10.872% | 5.0 | KES 49.30bn | KES 39.21bn | 100.000 |
| FXD2/2019/015 | primary | 12.734% | 12.734% | 14.9 | KES 21.54bn | KES 19.32bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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