Kenya Treasury bonds · auction of 16 November 2020
Kenya bond auction, 16 November 2020: FXD1/2018/025 at 13.494%
The Central Bank of Kenya's bond auction dated 16 November 2020 was a tap sale of FXD1/2018/025.
Bids came to KES 8.0bn against KES 20.0bn on offer (40% subscribed), and the Treasury accepted KES 7.9bn.
FXD1/2018/025 cleared at 13.494%, against a 13.400% coupon, with 22.5 years to maturity. Its previous sale, on 19 October 2020, priced at 13.494%, so the yield is unchanged.
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 22.5 years
At this auction KES 100,000 of face value cost about KES 104,717 (price 104.717 per 100), and the yield that implies is 13.49% 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 271,577 in coupons, plus KES -4,717 loss between what you paid and the KES 100,000 repaid; roughly KES 266,860 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/025 | tap | 13.494% | 13.400% | 22.5 | KES 7.96bn | KES 7.90bn | 104.717 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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