Kenya Treasury bonds · auction of 23 November 2020
Kenya bond auction, 23 November 2020: FXD1/2018/020 at 13.247%
The Central Bank of Kenya's bond auction dated 23 November 2020 was a re-opening of FXD1/2018/020 and FXD2/2013/015.
Bids came to KES 56.0bn against KES 40.0bn on offer (140% subscribed), and the Treasury accepted KES 53.7bn.
FXD1/2018/020 cleared at 13.247%, against a 13.200% coupon, with 17.3 years to maturity. Its previous sale, on 23 March 2020, priced at 13.290%, so the yield is down 4 basis points.
FXD2/2013/015 cleared at 11.445%, against a 12.000% coupon, with 7.4 years to maturity. Its previous sale, on 26 February 2018, priced at 12.906%, so the yield is down 146 basis points.
What this means for KES 100,000 of FXD1/2018/020
Worked from the published result · information, not advice
KES 5,940 every six months, after tax, for 17.3 years
At this auction KES 100,000 of face value cost about KES 101,921 (price 101.921 per 100), and the yield that implies is 13.25% 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 (2038-03-01), that is about KES 205,139 in coupons, plus KES -1,921 loss between what you paid and the KES 100,000 repaid; roughly KES 203,218 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 | reopening | 13.247% | 13.200% | 17.3 | KES 28.88bn | KES 27.49bn | 101.921 |
| FXD2/2013/015 | reopening | 11.445% | 12.000% | 7.4 | KES 27.10bn | KES 26.23bn | 103.850 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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