Kenya Treasury bonds · auction of 19 August 2019
Kenya bond auction, 19 August 2019: FXD3/2019/010 at 11.517%
The Central Bank of Kenya's bond auction dated 19 August 2019 was a primary issue of FXD1/2019/020 and FXD3/2019/010.
Bids came to KES 67.4bn against KES 50.0bn on offer (135% subscribed), and the Treasury accepted KES 59.7bn.
FXD1/2019/020 cleared at 12.744%, against a 12.873% coupon, with 19.6 years to maturity. Its previous sale, on 15 April 2019, priced at 12.873%, so the yield is down 13 basis points.
FXD3/2019/010 cleared at 11.517%, against a 11.517% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD3/2019/010
Worked from the published result · information, not advice
KES 4,895 every six months, after tax, for 10.0 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 11.52% a year. The coupon is 11.52%: KES 11,517 a year on KES 100,000 of face value, paid in two halves, KES 9,789 after 15% withholding tax.
Held to maturity (2029-08-06), that is about KES 97,559 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 97,559 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/020 | primary | 12.744% | 12.873% | 19.6 | KES 14.67bn | KES 14.67bn | 105.336 |
| FXD3/2019/010 | primary | 11.517% | 11.517% | 10.0 | KES 52.77bn | KES 45.01bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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