Kenya Treasury bonds · auction of 15 November 2021
Kenya bond auction, 15 November 2021: FXD1/2021/005 at 11.277%
The Central Bank of Kenya's bond auction dated 15 November 2021 was a re-opening of FXD1/2019/020 and FXD1/2021/005.
Bids came to KES 84.2bn against KES 50.0bn on offer (168% subscribed), and the Treasury accepted KES 69.5bn.
FXD1/2019/020 cleared at 13.408%, against a 12.873% coupon, with 17.3 years to maturity. Its previous sale, on 5 July 2021, priced at 13.261%, so the yield is up 15 basis points.
FXD1/2021/005 cleared at 11.277%, against a 11.277% coupon, with 5.0 years to maturity.
What this means for KES 100,000 of FXD1/2021/005
Worked from the published result · information, not advice
KES 4,793 every six months, after tax, for 5.0 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 11.28% a year. The coupon is 11.28%: KES 11,277 a year on KES 100,000 of face value, paid in two halves, KES 9,585 after 15% withholding tax.
Held to maturity (2026-11-09), that is about KES 47,763 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 47,763 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2019/020 | reopening | 13.408% | 12.873% | 17.3 | KES 17.57bn | KES 15.85bn | 97.632 |
| FXD1/2021/005 | reopening | 11.277% | 11.277% | 5.0 | KES 66.60bn | KES 53.66bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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