Kenya Treasury bonds · auction of 10 August 2020
Kenya bond auction, 10 August 2020: FXD2/2018/020 at 12.931%
The Central Bank of Kenya's bond auction dated 10 August 2020 was a tap sale of FXD2/2018/020.
Bids came to KES 40.3bn against KES 40.0bn on offer (101% subscribed), and the Treasury accepted KES 41.0bn.
FXD2/2018/020 cleared at 12.931%, against a 13.200% coupon, with 17.9 years to maturity. Its previous sale, on 24 September 2018, priced at 12.931%, so the yield is unchanged.
What this means for KES 100,000 of FXD2/2018/020
Worked from the published result · information, not advice
KES 5,940 every six months, after tax, for 17.9 years
At this auction KES 100,000 of face value cost about KES 102,354 (price 102.354 per 100), and the yield that implies is 12.93% a year. The coupon is 13.20%: KES 13,200 a year on KES 100,000 of face value, paid in two halves, KES 11,880 after 10% withholding tax.
Held to maturity (2038-07-05), that is about KES 212,653 in coupons, plus KES -2,354 loss between what you paid and the KES 100,000 repaid; roughly KES 210,299 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2018/020 | tap | 12.931% | 13.200% | 17.9 | KES 40.26bn | KES 41.01bn | 102.354 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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