Kenya Treasury bonds · auction of 25 November 2019
Kenya bond auction, 25 November 2019: FXD4/2019/010 at 12.280%
The Central Bank of Kenya's bond auction dated 25 November 2019 was a primary issue of FXD4/2019/010.
Bids came to KES 38.4bn against KES 50.0bn on offer (77% subscribed), and the Treasury accepted KES 28.4bn.
FXD4/2019/010 cleared at 12.280%, against a 12.280% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD4/2019/010
Worked from the published result · information, not advice
KES 5,219 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 12.28% a year. The coupon is 12.28%: KES 12,280 a year on KES 100,000 of face value, paid in two halves, KES 10,438 after 15% withholding tax.
Held to maturity (2029-11-12), that is about KES 104,023 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 104,023 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 |
|---|---|---|---|---|---|---|---|
| FXD4/2019/010 | primary | 12.280% | 12.280% | 10.0 | KES 38.37bn | KES 28.35bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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