Kenya Treasury bonds · auction of 15 March 2021
Kenya bond auction, 15 March 2021: FXD2/2018/020 at 13.441%
The Central Bank of Kenya's bond auction dated 15 March 2021 was a re-opening of FXD1/2019/010 and FXD2/2018/020.
Bids came to KES 48.7bn against KES 50.0bn on offer (97% subscribed), and the Treasury accepted KES 48.3bn.
FXD1/2019/010 cleared at 12.410%, against a 12.438% coupon, with 7.9 years to maturity. Its previous sale, on 27 January 2020, priced at 12.430%, so the yield is down 2 basis points.
FXD2/2018/020 cleared at 13.441%, against a 13.200% coupon, with 17.3 years to maturity. Its previous sale, on 10 August 2020, priced at 12.931%, so the yield is up 51 basis points.
What this means for KES 100,000 of FXD2/2018/020
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 100,129 (price 100.129 per 100), and the yield that implies is 13.44% 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 (2038-07-05), that is about KES 205,595 in coupons, plus KES -129 loss between what you paid and the KES 100,000 repaid; roughly KES 205,466 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/010 | reopening | 12.410% | 12.438% | 7.9 | KES 15.90bn | KES 15.51bn | 100.838 |
| FXD2/2018/020 | reopening | 13.441% | 13.200% | 17.3 | KES 32.81bn | KES 32.80bn | 100.129 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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