Kenya Treasury bonds · auction of 14 March 2022
Kenya bond auction, 14 March 2022: FXD1/2021/005 at 11.997%
The Central Bank of Kenya's bond auction dated 14 March 2022 was a re-opening of FXD1/2020/015, FXD1/2021/005 and FXD1/2021/025.
Bids came to KES 40.9bn against KES 50.0bn on offer (82% subscribed), and the Treasury accepted KES 18.5bn.
FXD1/2020/015 cleared at 13.732%, against a 12.756% coupon, with 12.9 years to maturity. Its previous sale, on 21 September 2020, priced at 12.512%, so the yield is up 122 basis points.
FXD1/2021/005 cleared at 11.997%, against a 11.277% coupon, with 4.7 years to maturity. Its previous sale, on 15 November 2021, priced at 11.277%, so the yield is up 72 basis points.
FXD1/2021/025 cleared at 13.973%, against a 13.924% coupon, with 24.1 years to maturity. Its previous sale, on 11 October 2021, priced at 13.823%, so the yield is up 15 basis points.
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 4.7 years
At this auction KES 100,000 of face value cost about KES 101,130 (price 101.130 per 100), and the yield that implies is 12.00% 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 44,640 in coupons, plus KES -1,130 loss between what you paid and the KES 100,000 repaid; roughly KES 43,510 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/015 | reopening | 13.732% | 12.756% | 12.9 | KES 9.14bn | KES 6.22bn | 94.881 |
| FXD1/2021/005 | reopening | 11.997% | 11.277% | 4.7 | KES 9.21bn | KES 8.29bn | 101.130 |
| FXD1/2021/025 | reopening | 13.973% | 13.924% | 24.1 | KES 22.60bn | KES 3.94bn | 104.432 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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