Kenya Treasury bonds · auction of 13 December 2021
Kenya bond auction, 13 December 2021: FXD4/2019/010 at 12.642%
The Central Bank of Kenya's bond auction dated 13 December 2021 was a re-opening of FXD1/2018/020 and FXD4/2019/010.
Bids came to KES 41.2bn against KES 40.0bn on offer (103% subscribed), and the Treasury accepted KES 37.8bn.
FXD1/2018/020 cleared at 13.366%, against a 13.200% coupon, with 16.2 years to maturity. Its previous sale, on 16 August 2021, priced at 13.187%, so the yield is up 18 basis points.
FXD4/2019/010 cleared at 12.642%, against a 12.280% coupon, with 7.9 years to maturity. Its previous sale, on 22 June 2020, priced at 12.415%, so the yield is up 23 basis points.
What this means for KES 100,000 of FXD4/2019/010
Worked from the published result · information, not advice
KES 5,219 every six months, after tax, for 7.9 years
At this auction KES 100,000 of face value cost about KES 98,908 (price 98.908 per 100), and the yield that implies is 12.64% a year. The coupon is 12.28%: KES 12,280 a year on KES 100,000 of face value, paid in two halves, KES 10,438 after 15% withholding tax.
Held to maturity (2029-11-12), that is about KES 82,618 in coupons, plus KES 1,092 gain between what you paid and the KES 100,000 repaid; roughly KES 83,710 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 | 13.366% | 13.200% | 16.2 | KES 20.91bn | KES 17.56bn | 101.903 |
| FXD4/2019/010 | reopening | 12.642% | 12.280% | 7.9 | KES 20.27bn | KES 20.26bn | 98.908 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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