Kenya Treasury bonds · auction of 14 December 2020
Kenya bond auction, 14 December 2020: FXD2/2019/015 at 12.807%
The Central Bank of Kenya's bond auction dated 14 December 2020 was a re-opening of FXD1/2012/015 and FXD2/2019/015.
Bids came to KES 24.3bn against KES 40.0bn on offer (61% subscribed), and the Treasury accepted KES 18.3bn.
FXD1/2012/015 cleared at 11.461%, against a 11.000% coupon, with 6.7 years to maturity. Its previous sale, on 17 June 2019, priced at 11.593%, so the yield is down 13 basis points.
FXD2/2019/015 cleared at 12.807%, against a 12.734% coupon, with 13.4 years to maturity. Its previous sale, on 7 October 2019, priced at 12.673%, so the yield is up 13 basis points.
What this means for KES 100,000 of FXD2/2019/015
Worked from the published result · information, not advice
KES 5,730 every six months, after tax, for 13.4 years
At this auction KES 100,000 of face value cost about KES 100,732 (price 100.732 per 100), and the yield that implies is 12.81% a year. The coupon is 12.73%: KES 12,734 a year on KES 100,000 of face value, paid in two halves, KES 11,461 after 10% withholding tax.
Held to maturity (2034-04-24), that is about KES 153,090 in coupons, plus KES -732 loss between what you paid and the KES 100,000 repaid; roughly KES 152,358 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/015 | reopening | 11.461% | 11.000% | 6.7 | KES 9.26bn | KES 8.55bn | 100.585 |
| FXD2/2019/015 | reopening | 12.807% | 12.734% | 13.4 | KES 15.08bn | KES 9.71bn | 100.732 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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