Kenya Treasury bonds · auction of 5 July 2021
Kenya bond auction, 5 July 2021: FXD1/2019/020 at 13.261%
The Central Bank of Kenya's bond auction dated 5 July 2021 was a tap sale of FXD1/2012/020 and FXD1/2019/020.
Bids came to KES 38.5bn against KES 50.0bn on offer (77% subscribed), and the Treasury accepted KES 37.4bn.
FXD1/2012/020 cleared at 12.498%, against a 12.000% coupon, with 11.3 years to maturity. Its previous sale, on 21 June 2021, priced at 12.498%, so the yield is unchanged.
FXD1/2019/020 cleared at 13.261%, against a 12.873% coupon, with 17.7 years to maturity. Its previous sale, on 21 June 2021, priced at 13.261%, so the yield is unchanged.
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 100,292 (price 100.292 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 205,164 in coupons, plus KES -292 loss between what you paid and the KES 100,000 repaid; roughly KES 204,872 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 | 12.498% | 12.000% | 11.3 | KES 8.64bn | KES 8.38bn | 98.600 |
| FXD1/2019/020 | tap | 13.261% | 12.873% | 17.7 | KES 29.84bn | KES 29.05bn | 100.292 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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