Kenya Treasury bonds · auction of 21 June 2021
Kenya bond auction, 21 June 2021: FXD1/2019/020 at 13.261%
The Central Bank of Kenya's bond auction dated 21 June 2021 was a re-opening of FXD1/2012/020 and FXD1/2019/020.
Bids came to KES 64.9bn against KES 30.0bn on offer (216% subscribed), and the Treasury accepted KES 19.7bn.
FXD1/2012/020 cleared at 12.498%, against a 12.000% coupon, with 11.4 years to maturity. Its previous sale, on 22 February 2021, priced at 12.587%, so the yield is down 9 basis points.
FXD1/2019/020 cleared at 13.261%, against a 12.873% coupon, with 17.7 years to maturity. Its previous sale, on 19 August 2019, priced at 12.744%, so the yield is up 52 basis points.
What this means for KES 100,000 of FXD1/2019/020
Worked from the published result · information, not advice
KES 5,793 every six months, after tax, for 17.7 years
At this auction KES 100,000 of face value cost about KES 99,798 (price 99.798 per 100), and the yield that implies is 13.26% a year. The coupon is 12.87%: KES 12,873 a year on KES 100,000 of face value, paid in two halves, KES 11,586 after 10% withholding tax.
Held to maturity (2039-03-21), that is about KES 205,609 in coupons, plus KES 202 gain between what you paid and the KES 100,000 repaid; roughly KES 205,811 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 | 12.498% | 12.000% | 11.4 | KES 23.88bn | KES 6.29bn | 98.141 |
| FXD1/2019/020 | reopening | 13.261% | 12.873% | 17.7 | KES 41.05bn | KES 13.40bn | 99.798 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.