Kenya Treasury bonds · auction of 16 May 2022
Kenya bond auction, 16 May 2022: FXD1/2022/010 at 13.490%
The Central Bank of Kenya's bond auction dated 16 May 2022 was a re-opening of FXD1/2021/025 and FXD1/2022/010.
Bids came to KES 43.1bn against KES 60.0bn on offer (72% subscribed), and the Treasury accepted KES 31.7bn.
FXD1/2021/025 cleared at 13.976%, against a 13.924% coupon, with 23.9 years to maturity. Its previous sale, on 21 March 2022, priced at 13.973%, so the yield is unchanged.
FXD1/2022/010 cleared at 13.490%, against a 13.490% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD1/2022/010
Worked from the published result · information, not advice
KES 5,733 every six months, after tax, for 10.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 13.49% a year. The coupon is 13.49%: KES 13,490 a year on KES 100,000 of face value, paid in two halves, KES 11,467 after 15% withholding tax.
Held to maturity (2032-05-03), that is about KES 114,273 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 114,273 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2021/025 | reopening | 13.976% | 13.924% | 23.9 | KES 10.23bn | KES 3.06bn | 99.902 |
| FXD1/2022/010 | reopening | 13.490% | 13.490% | 10.0 | KES 32.89bn | KES 28.68bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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