Kenya Treasury bonds · auction of 23 March 2020
Kenya bond auction, 23 March 2020: FXD1/2018/025 at 13.817%
The Central Bank of Kenya's bond auction dated 23 March 2020 was a primary issue of FXD1/2018/020 and FXD1/2018/025.
Bids came to KES 35.2bn against KES 50.0bn on offer (70% subscribed), and the Treasury accepted KES 22.9bn.
FXD1/2018/020 cleared at 13.290%, against a 13.200% coupon, with 17.9 years to maturity. Its previous sale, on 30 April 2018, priced at 13.327%, so the yield is down 4 basis points.
FXD1/2018/025 cleared at 13.817%, against a 13.400% coupon, with 23.2 years to maturity. Its previous sale, on 24 February 2020, priced at 13.599%, so the yield is up 22 basis points.
What this means for KES 100,000 of FXD1/2018/025
Worked from the published result · information, not advice
KES 6,030 every six months, after tax, for 23.2 years
At this auction KES 100,000 of face value cost about KES 100,411 (price 100.411 per 100), and the yield that implies is 13.82% a year. The coupon is 13.40%: KES 13,400 a year on KES 100,000 of face value, paid in two halves, KES 12,060 after 10% withholding tax.
Held to maturity (2043-05-25), that is about KES 279,435 in coupons, plus KES -411 loss between what you paid and the KES 100,000 repaid; roughly KES 279,024 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/020 | primary | 13.290% | 13.200% | 17.9 | KES 19.82bn | KES 8.27bn | 99.390 |
| FXD1/2018/025 | primary | 13.817% | 13.400% | 23.2 | KES 15.34bn | KES 14.64bn | 100.411 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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