Kenya Treasury bonds · auction of 21 March 2022
Kenya bond auction, 21 March 2022: FXD1/2020/015 at 13.732%
The Central Bank of Kenya's bond auction dated 21 March 2022 was a tap sale of FXD1/2020/015, FXD1/2021/005 and FXD1/2021/025.
Bids came to KES 24.9bn against KES 31.5bn on offer (79% subscribed), and the Treasury accepted KES 23.9bn.
FXD1/2020/015 cleared at 13.732%, against a 12.756% coupon, with 12.9 years to maturity. Its previous sale, on 14 March 2022, priced at 13.732%, so the yield is unchanged.
FXD1/2021/005 cleared at 11.997%, against a 11.277% coupon, with 4.6 years to maturity. Its previous sale, on 14 March 2022, priced at 11.997%, so the yield is unchanged.
FXD1/2021/025 cleared at 13.973%, against a 13.924% coupon, with 24.1 years to maturity. Its previous sale, on 14 March 2022, priced at 13.973%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2020/015
Worked from the published result · information, not advice
KES 5,740 every six months, after tax, for 12.9 years
At this auction KES 100,000 of face value cost about KES 95,124 (price 95.124 per 100), and the yield that implies is 13.73% a year. The coupon is 12.76%: KES 12,756 a year on KES 100,000 of face value, paid in two halves, KES 11,480 after 10% withholding tax.
Held to maturity (2035-02-05), that is about KES 147,854 in coupons, plus KES 4,876 gain between what you paid and the KES 100,000 repaid; roughly KES 152,730 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 | tap | 13.732% | 12.756% | 12.9 | KES 15.56bn | KES 14.65bn | 95.124 |
| FXD1/2021/005 | tap | 11.997% | 11.277% | 4.6 | KES 3.93bn | KES 3.83bn | 101.357 |
| FXD1/2021/025 | tap | 13.973% | 13.924% | 24.1 | KES 5.39bn | KES 5.37bn | 104.704 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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