Kenya Treasury bonds · auction of 27 July 2020
Kenya bond auction, 27 July 2020: FXD1/2019/015 at 12.344%
The Central Bank of Kenya's bond auction dated 27 July 2020 was a re-opening of FXD1/2019/015, FXD1/2020/005 and FXD2/2018/010.
Bids came to KES 181.8bn against KES 60.0bn on offer (303% subscribed), and the Treasury accepted KES 80.9bn.
FXD1/2019/015 cleared at 12.344%, against a 12.857% coupon, with 13.5 years to maturity. Its previous sale, on 11 February 2019, priced at 12.768%, so the yield is down 42 basis points.
FXD1/2020/005 cleared at 10.260%, against a 11.667% coupon, with 4.8 years to maturity. Its previous sale, on 25 May 2020, priced at 11.748%, so the yield is down 149 basis points.
FXD2/2018/010 cleared at 11.453%, against a 12.502% coupon, with 8.4 years to maturity. Its previous sale, on 17 December 2018, priced at 12.502%, so the yield is down 105 basis points.
What this means for KES 100,000 of FXD1/2019/015
Worked from the published result · information, not advice
KES 5,786 every six months, after tax, for 13.5 years
At this auction KES 100,000 of face value cost about KES 103,331 (price 103.331 per 100), and the yield that implies is 12.34% a year. The coupon is 12.86%: KES 12,857 a year on KES 100,000 of face value, paid in two halves, KES 11,571 after 10% withholding tax.
Held to maturity (2034-01-09), that is about KES 155,678 in coupons, plus KES -3,331 loss between what you paid and the KES 100,000 repaid; roughly KES 152,347 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/015 | reopening | 12.344% | 12.857% | 13.5 | KES 60.95bn | KES 50.24bn | 103.331 |
| FXD1/2020/005 | reopening | 10.260% | 11.667% | 4.8 | KES 65.34bn | KES 9.34bn | 107.653 |
| FXD2/2018/010 | reopening | 11.453% | 12.502% | 8.4 | KES 55.49bn | KES 21.27bn | 106.971 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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