Kenya Treasury bonds · auction of 25 May 2020
Kenya bond auction, 25 May 2020: FXD1/2020/005 at 11.748%
The Central Bank of Kenya's bond auction dated 25 May 2020 was a re-opening of FXD1/2020/005.
Bids came to KES 20.6bn against KES 30.0bn on offer (69% subscribed), and the Treasury accepted KES 8.9bn.
FXD1/2020/005 cleared at 11.748%, against a 11.667% coupon, with 4.9 years to maturity. Its previous sale, on 11 May 2020, priced at 11.667%, so the yield is up 8 basis points.
What this means for KES 100,000 of FXD1/2020/005
Worked from the published result · information, not advice
KES 4,958 every six months, after tax, for 4.9 years
At this auction KES 100,000 of face value cost about KES 100,139 (price 100.139 per 100), and the yield that implies is 11.75% a year. The coupon is 11.67%: KES 11,667 a year on KES 100,000 of face value, paid in two halves, KES 9,917 after 15% withholding tax.
Held to maturity (2025-05-05), that is about KES 49,035 in coupons, plus KES -139 loss between what you paid and the KES 100,000 repaid; roughly KES 48,896 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/005 | reopening | 11.748% | 11.667% | 4.9 | KES 20.58bn | KES 8.95bn | 100.139 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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