Kenya Treasury bonds · auction of 29 July 2019
Kenya bond auction, 29 July 2019: FXD3/2019/015 at 12.340%
The Central Bank of Kenya's bond auction dated 29 July 2019 was a primary issue of FXD3/2019/015.
Bids came to KES 86.7bn against KES 40.0bn on offer (217% subscribed), and the Treasury accepted KES 50.6bn.
FXD3/2019/015 cleared at 12.340%, against a 12.340% coupon, with 14.9 years to maturity.
What this means for KES 100,000 of FXD3/2019/015
Worked from the published result · information, not advice
KES 5,553 every six months, after tax, for 14.9 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 12.34% a year. The coupon is 12.34%: KES 12,340 a year on KES 100,000 of face value, paid in two halves, KES 11,106 after 10% withholding tax.
Held to maturity (2034-07-10), that is about KES 166,020 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 166,020 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 |
|---|---|---|---|---|---|---|---|
| FXD3/2019/015 | primary | 12.340% | 12.340% | 14.9 | KES 86.67bn | KES 50.58bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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