Kenya Treasury bonds · auction of 16 August 2021
Kenya bond auction, 16 August 2021: FXD1/2021/020 at 13.444%
The Central Bank of Kenya's bond auction dated 16 August 2021 was a re-opening of FXD1/2018/020, FXD1/2021/020 and FXD3/2019/010.
Bids came to KES 104.6bn against KES 60.0bn on offer (174% subscribed), and the Treasury accepted KES 80.3bn.
FXD1/2018/020 cleared at 13.187%, against a 13.200% coupon, with 16.5 years to maturity. Its previous sale, on 23 November 2020, priced at 13.247%, so the yield is down 6 basis points.
FXD1/2021/020 cleared at 13.444%, against a 13.444% coupon, with 19.9 years to maturity.
FXD3/2019/010 cleared at 12.172%, against a 11.517% coupon, with 8.0 years to maturity. Its previous sale, on 19 August 2019, priced at 11.517%, so the yield is up 66 basis points.
What this means for KES 100,000 of FXD1/2021/020
Worked from the published result · information, not advice
KES 6,050 every six months, after tax, for 19.9 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 13.44% a year. The coupon is 13.44%: KES 13,444 a year on KES 100,000 of face value, paid in two halves, KES 12,100 after 10% withholding tax.
Held to maturity (2041-07-22), that is about KES 241,164 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 241,164 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/020 | reopening | 13.187% | 13.200% | 16.5 | KES 22.82bn | KES 17.78bn | 105.385 |
| FXD1/2021/020 | reopening | 13.444% | 13.444% | 19.9 | KES 43.50bn | KES 39.54bn | 100.000 |
| FXD3/2019/010 | reopening | 12.172% | 11.517% | 8.0 | KES 38.31bn | KES 22.97bn | 96.710 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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