Kenya Treasury bonds · auction of 11 October 2021
Kenya bond auction, 11 October 2021: FXD1/2021/025 at 13.823%
The Central Bank of Kenya's bond auction dated 11 October 2021 was a re-opening of FXD1/2013/015, FXD1/2021/025 and FXD3/2019/015.
Bids came to KES 55.5bn against KES 60.0bn on offer (92% subscribed), and the Treasury accepted KES 52.0bn.
FXD1/2013/015 cleared at 11.882%, against a 11.250% coupon, with 6.7 years to maturity. Its previous sale, on 22 February 2021, priced at 11.784%, so the yield is up 10 basis points.
FXD1/2021/025 cleared at 13.823%, against a 13.924% coupon, with 24.9 years to maturity. Its previous sale, on 19 July 2021, priced at 13.681%, so the yield is up 14 basis points.
FXD3/2019/015 cleared at 12.845%, against a 12.340% coupon, with 13.0 years to maturity. Its previous sale, on 29 July 2019, priced at 12.340%, so the yield is up 51 basis points.
What this means for KES 100,000 of FXD1/2021/025
Worked from the published result · information, not advice
KES 6,266 every six months, after tax, for 24.9 years
At this auction KES 100,000 of face value cost about KES 106,563 (price 106.563 per 100), and the yield that implies is 13.82% a year. The coupon is 13.92%: KES 13,924 a year on KES 100,000 of face value, paid in two halves, KES 12,532 after 10% withholding tax.
Held to maturity (2046-09-04), that is about KES 312,012 in coupons, plus KES -6,563 loss between what you paid and the KES 100,000 repaid; roughly KES 305,449 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2013/015 | reopening | 11.882% | 11.250% | 6.7 | KES 23.41bn | KES 22.88bn | 98.936 |
| FXD1/2021/025 | reopening | 13.823% | 13.924% | 24.9 | KES 28.67bn | KES 25.90bn | 106.563 |
| FXD3/2019/015 | reopening | 12.845% | 12.340% | 13.0 | KES 3.39bn | KES 3.27bn | 99.430 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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