Kenya Treasury bonds · auction of 8 February 2021
Kenya bond auction, 8 February 2021: FXD1/2012/020 at 12.587%
The Central Bank of Kenya's bond auction dated 8 February 2021 was a re-opening of FXD1/2012/020 and FXD1/2013/015.
Bids came to KES 41.9bn against KES 50.0bn on offer (84% subscribed), and the Treasury accepted KES 32.1bn.
FXD1/2012/020 cleared at 12.587%, against a 12.000% coupon, with 11.7 years to maturity. Its previous sale, on 30 June 2014, priced at 11.934%, so the yield is up 65 basis points.
FXD1/2013/015 cleared at 11.784%, against a 11.250% coupon, with 7.0 years to maturity. Its previous sale, on 22 December 2014, priced at 12.766%, so the yield is down 98 basis points.
What this means for KES 100,000 of FXD1/2012/020
Worked from the published result · information, not advice
KES 5,400 every six months, after tax, for 11.7 years
At this auction KES 100,000 of face value cost about KES 99,169 (price 99.169 per 100), and the yield that implies is 12.59% a year. The coupon is 12.00%: KES 12,000 a year on KES 100,000 of face value, paid in two halves, KES 10,800 after 10% withholding tax.
Held to maturity (2032-11-01), that is about KES 126,673 in coupons, plus KES 831 gain between what you paid and the KES 100,000 repaid; roughly KES 127,504 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/020 | reopening | 12.587% | 12.000% | 11.7 | KES 28.31bn | KES 22.71bn | 99.169 |
| FXD1/2013/015 | reopening | 11.784% | 11.250% | 7.0 | KES 13.55bn | KES 9.41bn | 102.900 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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