Kenya Treasury bonds · auction of 23 December 2019
Kenya bond auction, 23 December 2019: FXD3/2019/005 at 11.492%
The Central Bank of Kenya's bond auction dated 23 December 2019 was a tap sale of FXD3/2019/005.
Bids came to KES 9.8bn against KES 9.7bn on offer (100% subscribed), and the Treasury accepted KES 9.8bn.
FXD3/2019/005 cleared at 11.492%, against a 11.492% coupon, with 5.0 years to maturity. Its previous sale, on 16 December 2019, priced at 11.492%, so the yield is unchanged.
What this means for KES 100,000 of FXD3/2019/005
Worked from the published result · information, not advice
KES 4,884 every six months, after tax, for 5.0 years
At this auction KES 100,000 of face value cost about KES 100,215 (price 100.215 per 100), and the yield that implies is 11.49% a year. The coupon is 11.49%: KES 11,492 a year on KES 100,000 of face value, paid in two halves, KES 9,768 after 15% withholding tax.
Held to maturity (2024-12-09), that is about KES 48,487 in coupons, plus KES -215 loss between what you paid and the KES 100,000 repaid; roughly KES 48,272 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 |
|---|---|---|---|---|---|---|---|
| FXD3/2019/005 | tap | 11.492% | 11.492% | 5.0 | KES 9.75bn | KES 9.75bn | 100.215 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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