Kenya Treasury bonds · auction of 7 October 2019
Kenya bond auction, 7 October 2019: FXD1/2018/015 at 12.564%
The Central Bank of Kenya's bond auction dated 7 October 2019 was a tap sale of FXD1/2018/015 and FXD2/2019/015.
FXD1/2018/015 cleared at 12.564%, against a 12.650% coupon, with 13.6 years to maturity. Its previous sale, on 23 September 2019, priced at 12.564%, so the yield is unchanged.
FXD2/2019/015 cleared at 12.673%, against a 12.734% coupon, with 14.5 years to maturity. Its previous sale, on 23 September 2019, priced at 12.673%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2018/015
Worked from the published result · information, not advice
KES 5,693 every six months, after tax, for 13.6 years
At this auction KES 100,000 of face value cost about KES 105,139 (price 105.139 per 100), and the yield that implies is 12.56% a year. The coupon is 12.65%: KES 12,650 a year on KES 100,000 of face value, paid in two halves, KES 11,385 after 10% withholding tax.
Held to maturity (2033-05-09), that is about KES 154,699 in coupons, plus KES -5,139 loss between what you paid and the KES 100,000 repaid; roughly KES 149,560 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 | tap | 12.564% | 12.650% | 13.6 | — | — | 105.139 |
| FXD2/2019/015 | tap | 12.673% | 12.734% | 14.5 | — | — | 105.513 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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