Kenya Treasury bonds · auction of 19 July 2021
Kenya bond auction, 19 July 2021: FXD1/2012/015 at 11.474%
The Central Bank of Kenya's bond auction dated 19 July 2021 was a re-opening of FXD1/2012/015, FXD1/2018/015 and FXD1/2021/025.
Bids came to KES 116.9bn against KES 60.0bn on offer (195% subscribed), and the Treasury accepted KES 79.9bn.
FXD1/2012/015 cleared at 11.474%, against a 11.000% coupon, with 6.1 years to maturity. Its previous sale, on 28 December 2020, priced at 11.461%, so the yield is up 1 basis point.
FXD1/2018/015 cleared at 12.607%, against a 12.650% coupon, with 11.8 years to maturity. Its previous sale, on 7 October 2019, priced at 12.564%, so the yield is up 4 basis points.
FXD1/2021/025 cleared at 13.681%, against a 13.924% coupon, with 24.7 years to maturity. Its previous sale, on 24 May 2021, priced at 13.924%, so the yield is down 24 basis points.
What this means for KES 100,000 of FXD1/2012/015
Worked from the published result · information, not advice
KES 4,675 every six months, after tax, for 6.1 years
At this auction KES 100,000 of face value cost about KES 101,723 (price 101.723 per 100), and the yield that implies is 11.47% a year. The coupon is 11.00%: KES 11,000 a year on KES 100,000 of face value, paid in two halves, KES 9,350 after 15% withholding tax.
Held to maturity (2027-09-06), that is about KES 57,342 in coupons, plus KES -1,723 loss between what you paid and the KES 100,000 repaid; roughly KES 55,619 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2012/015 | reopening | 11.474% | 11.000% | 6.1 | KES 48.81bn | KES 30.09bn | 101.723 |
| FXD1/2018/015 | reopening | 12.607% | 12.650% | 11.8 | KES 28.21bn | KES 27.20bn | 102.166 |
| FXD1/2021/025 | reopening | 13.681% | 13.924% | 24.7 | KES 39.91bn | KES 22.64bn | 104.333 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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