Kenya Treasury bonds · auction of 10 May 2021
Kenya bond auction, 10 May 2021: FXD1/2021/025 at 13.924%
The Central Bank of Kenya's bond auction dated 10 May 2021 was a re-opening of FXD1/2021/025 and FXD2/2019/015.
Bids came to KES 42.6bn against KES 30.0bn on offer (142% subscribed), and the Treasury accepted KES 20.3bn.
FXD1/2021/025 cleared at 13.924%, against a 13.924% coupon, with 24.9 years to maturity.
FXD2/2019/015 cleared at 12.975%, against a 12.734% coupon, with 13.0 years to maturity. Its previous sale, on 28 December 2020, priced at 12.807%, so the yield is up 17 basis points.
What this means for KES 100,000 of FXD1/2021/025
Worked from the published result · information, not advice
KES 6,266 every six months, after tax, for 24.9 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 13.92% a year. The coupon is 13.92%: KES 13,924 a year on KES 100,000 of face value, paid in two halves, KES 12,532 after 10% withholding tax.
Held to maturity (2046-04-09), that is about KES 312,218 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 312,218 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2021/025 | reopening | 13.924% | 13.924% | 24.9 | KES 31.00bn | KES 14.25bn | 100.000 |
| FXD2/2019/015 | reopening | 12.975% | 12.734% | 13.0 | KES 11.58bn | KES 6.04bn | 98.505 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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