Kenya Treasury bonds · auction of 23 May 2022
Kenya bond auction, 23 May 2022: FXD1/2021/025 at 13.976%
The Central Bank of Kenya's bond auction dated 23 May 2022 was a tap sale of FXD1/2021/025 and FXD1/2022/010.
Bids came to KES 17.0bn against KES 10.0bn on offer (170% subscribed), and the Treasury accepted KES 17.0bn.
FXD1/2021/025 cleared at 13.976%, against a 13.924% coupon, with 23.9 years to maturity. Its previous sale, on 16 May 2022, priced at 13.976%, so the yield is unchanged.
FXD1/2022/010 cleared at 13.490%, against a 13.490% coupon, with 9.9 years to maturity. Its previous sale, on 16 May 2022, priced at 13.490%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2021/025
Worked from the published result · information, not advice
KES 6,266 every six months, after tax, for 23.9 years
At this auction KES 100,000 of face value cost about KES 100,162 (price 100.162 per 100), and the yield that implies is 13.98% a year. The coupon is 13.92%: KES 13,924 a year on KES 100,000 of face value, paid in two halves, KES 12,532 after 10% withholding tax.
Held to maturity (2046-04-09), that is about KES 299,249 in coupons, plus KES -162 loss between what you paid and the KES 100,000 repaid; roughly KES 299,087 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 | tap | 13.976% | 13.924% | 23.9 | KES 11.04bn | KES 11.00bn | 100.162 |
| FXD1/2022/010 | tap | 13.490% | 13.490% | 9.9 | KES 5.97bn | KES 5.97bn | 100.251 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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