Kenya Treasury bonds · auction of 24 May 2021
Kenya bond auction, 24 May 2021: FXD2/2019/015 at 12.975%
The Central Bank of Kenya's bond auction dated 24 May 2021 was a tap sale of FXD1/2021/025 and FXD2/2019/015.
Bids came to KES 20.9bn against KES 20.0bn on offer (105% subscribed), and the Treasury accepted KES 20.7bn.
FXD1/2021/025 cleared at 13.924%, against a 13.924% coupon, with 24.9 years to maturity. Its previous sale, on 10 May 2021, priced at 13.924%, so the yield is unchanged.
FXD2/2019/015 cleared at 12.975%, against a 12.734% coupon, with 12.9 years to maturity. Its previous sale, on 10 May 2021, priced at 12.975%, so the yield is unchanged.
What this means for KES 100,000 of FXD2/2019/015
Worked from the published result · information, not advice
KES 5,730 every six months, after tax, for 12.9 years
At this auction KES 100,000 of face value cost about KES 98,982 (price 98.982 per 100), and the yield that implies is 12.97% a year. The coupon is 12.73%: KES 12,734 a year on KES 100,000 of face value, paid in two halves, KES 11,461 after 10% withholding tax.
Held to maturity (2034-04-24), that is about KES 148,039 in coupons, plus KES 1,018 gain between what you paid and the KES 100,000 repaid; roughly KES 149,057 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 | tap | 13.924% | 13.924% | 24.9 | KES 5.04bn | KES 5.04bn | 100.519 |
| FXD2/2019/015 | tap | 12.975% | 12.734% | 12.9 | KES 15.90bn | KES 15.66bn | 98.982 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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