Kenya Treasury bonds · auction of 27 January 2020
Kenya bond auction, 27 January 2020: FXD1/2019/005 at 11.499%
The Central Bank of Kenya's bond auction dated 27 January 2020 was a re-opening of FXD1/2019/005 and FXD1/2019/010.
Bids came to KES 69.9bn against KES 50.0bn on offer (140% subscribed), and the Treasury accepted KES 63.7bn.
FXD1/2019/005 cleared at 11.499%, against a 11.304% coupon, with 4.1 years to maturity. Its previous sale, on 25 February 2019, priced at 11.304%, so the yield is up 20 basis points.
FXD1/2019/010 cleared at 12.430%, against a 12.438% coupon, with 9.0 years to maturity. Its previous sale, on 25 February 2019, priced at 12.438%, so the yield is down 1 basis point.
What this means for KES 100,000 of FXD1/2019/005
Worked from the published result · information, not advice
KES 4,804 every six months, after tax, for 4.1 years
At this auction KES 100,000 of face value cost about KES 104,141 (price 104.141 per 100), and the yield that implies is 11.50% a year. The coupon is 11.30%: KES 11,304 a year on KES 100,000 of face value, paid in two halves, KES 9,608 after 15% withholding tax.
Held to maturity (2024-02-19), that is about KES 39,039 in coupons, plus KES -4,141 loss between what you paid and the KES 100,000 repaid; roughly KES 34,898 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/005 | reopening | 11.499% | 11.304% | 4.1 | KES 44.52bn | KES 44.49bn | 104.141 |
| FXD1/2019/010 | reopening | 12.430% | 12.438% | 9.0 | KES 25.43bn | KES 19.26bn | 105.280 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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