Kenya Treasury bonds · auction of 11 January 2021
Kenya bond auction, 11 January 2021: FXD1/2021/002 at 9.486%
The Central Bank of Kenya's bond auction dated 11 January 2021 was a primary issue of FXD1/2021/002.
Bids came to KES 61.2bn against KES 25.0bn on offer (245% subscribed), and the Treasury accepted KES 55.9bn.
FXD1/2021/002 cleared at 9.486%, against a 9.486% coupon, with 2.0 years to maturity.
What this means for KES 100,000 of FXD1/2021/002
Worked from the published result · information, not advice
KES 4,032 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 9.49% a year. The coupon is 9.49%: KES 9,486 a year on KES 100,000 of face value, paid in two halves, KES 8,063 after 15% withholding tax.
Held to maturity (2023-01-09), that is about KES 16,071 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 16,071 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2021/002 | primary | 9.486% | 9.486% | 2.0 | KES 61.15bn | KES 55.86bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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