Kenya Treasury bonds · auction of 23 September 2019
Kenya bond auction, 23 September 2019: FXD2/2019/015 at 12.673%
The Central Bank of Kenya's bond auction dated 23 September 2019 was a re-opening of FXD1/2018/015 and FXD2/2019/015.
Bids came to KES 32.6bn against KES 50.0bn on offer (65% subscribed), and the Treasury accepted KES 32.6bn.
FXD1/2018/015 cleared at 12.564%, against a 12.650% coupon, with 13.6 years to maturity. Its previous sale, on 17 June 2019, priced at 12.456%, so the yield is up 11 basis points.
FXD2/2019/015 cleared at 12.673%, against a 12.734% coupon, with 14.6 years to maturity. Its previous sale, on 13 May 2019, priced at 12.734%, so the yield is down 6 basis points.
What this means for KES 100,000 of FXD2/2019/015
Worked from the published result · information, not advice
KES 5,730 every six months, after tax, for 14.6 years
At this auction KES 100,000 of face value cost about KES 105,016 (price 105.016 per 100), and the yield that implies is 12.67% a year. The coupon is 12.73%: KES 12,734 a year on KES 100,000 of face value, paid in two halves, KES 11,461 after 10% withholding tax.
Held to maturity (2034-04-24), that is about KES 167,147 in coupons, plus KES -5,016 loss between what you paid and the KES 100,000 repaid; roughly KES 162,131 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/015 | reopening | 12.564% | 12.650% | 13.6 | KES 15.26bn | KES 15.26bn | 104.647 |
| FXD2/2019/015 | reopening | 12.673% | 12.734% | 14.6 | KES 17.37bn | KES 17.37bn | 105.016 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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