Kenya Treasury bonds · auction of 10 January 2022
Kenya bond auction, 10 January 2022: FXD1/2020/005 at 11.234%
The Central Bank of Kenya's bond auction dated 10 January 2022 was a re-opening of FXD1/2020/005.
Bids came to KES 28.4bn against KES 30.0bn on offer (95% subscribed), and the Treasury accepted KES 27.4bn.
FXD1/2020/005 cleared at 11.234%, against a 11.667% coupon, with 3.3 years to maturity. Its previous sale, on 27 July 2020, priced at 10.260%, so the yield is up 97 basis points.
What this means for KES 100,000 of FXD1/2020/005
Worked from the published result · information, not advice
KES 4,958 every six months, after tax, for 3.3 years
At this auction KES 100,000 of face value cost about KES 103,160 (price 103.160 per 100), and the yield that implies is 11.23% a year. The coupon is 11.67%: KES 11,667 a year on KES 100,000 of face value, paid in two halves, KES 9,917 after 15% withholding tax.
Held to maturity (2025-05-05), that is about KES 32,880 in coupons, plus KES -3,160 loss between what you paid and the KES 100,000 repaid; roughly KES 29,720 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/005 | reopening | 11.234% | 11.667% | 3.3 | KES 28.39bn | KES 27.43bn | 103.160 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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