Kenya Treasury bonds · auction of 22 February 2021
Kenya bond auction, 22 February 2021: FXD1/2013/015 at 11.784%
The Central Bank of Kenya's bond auction dated 22 February 2021 was a tap sale of FXD1/2012/020 and FXD1/2013/015.
Bids came to KES 11.2bn against KES 18.0bn on offer (62% subscribed), and the Treasury accepted KES 10.9bn.
FXD1/2012/020 cleared at 12.587%, against a 12.000% coupon, with 11.7 years to maturity. Its previous sale, on 8 February 2021, priced at 12.587%, so the yield is unchanged.
FXD1/2013/015 cleared at 11.784%, against a 11.250% coupon, with 7.0 years to maturity. Its previous sale, on 8 February 2021, priced at 11.784%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2013/015
Worked from the published result · information, not advice
KES 4,781 every six months, after tax, for 7.0 years
At this auction KES 100,000 of face value cost about KES 99,716 (price 99.716 per 100), and the yield that implies is 11.78% a year. The coupon is 11.25%: KES 11,250 a year on KES 100,000 of face value, paid in two halves, KES 9,563 after 15% withholding tax.
Held to maturity (2028-02-07), that is about KES 66,525 in coupons, plus KES 284 gain between what you paid and the KES 100,000 repaid; roughly KES 66,809 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 | tap | 12.587% | 12.000% | 11.7 | KES 4.07bn | KES 3.92bn | 99.636 |
| FXD1/2013/015 | tap | 11.784% | 11.250% | 7.0 | KES 7.16bn | KES 6.99bn | 99.716 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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