Kenya Treasury bonds · auction of 24 January 2022
Kenya bond auction, 24 January 2022: FXD1/2021/020 at 13.792%
The Central Bank of Kenya's bond auction dated 24 January 2022 was a re-opening of FXD1/2021/020 and FXD2/2018/010.
Bids came to KES 38.4bn against KES 30.0bn on offer (128% subscribed), and the Treasury accepted KES 34.9bn.
FXD1/2021/020 cleared at 13.792%, against a 13.444% coupon, with 19.5 years to maturity. Its previous sale, on 16 August 2021, priced at 13.444%, so the yield is up 35 basis points.
FXD2/2018/010 cleared at 12.561%, against a 12.502% coupon, with 6.9 years to maturity. Its previous sale, on 27 July 2020, priced at 11.453%, so the yield is up 111 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 19.5 years
At this auction KES 100,000 of face value cost about KES 103,586 (price 103.586 per 100), and the yield that implies is 13.79% 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 235,830 in coupons, plus KES -3,586 loss between what you paid and the KES 100,000 repaid; roughly KES 232,244 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2021/020 | reopening | 13.792% | 13.444% | 19.5 | KES 27.98bn | KES 27.60bn | 103.586 |
| FXD2/2018/010 | reopening | 12.561% | 12.502% | 6.9 | KES 10.43bn | KES 7.30bn | 101.142 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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