Kenya Treasury bonds · auction of 27 June 2022
Kenya bond auction, 27 June 2022: FXD1/2022/015 at 13.942%
The Central Bank of Kenya's bond auction dated 27 June 2022 was a tap sale of FXD1/2022/003 and FXD1/2022/015.
Bids came to KES 19.6bn against KES 25.0bn on offer (78% subscribed), and the Treasury accepted KES 19.6bn.
FXD1/2022/003 cleared at 11.766%, against a 11.766% coupon, with 2.8 years to maturity. Its previous sale, on 11 April 2022, priced at 11.766%, so the yield is unchanged.
FXD1/2022/015 cleared at 13.942%, against a 13.942% coupon, with 14.8 years to maturity. Its previous sale, on 25 April 2022, priced at 13.942%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2022/015
Worked from the published result · information, not advice
KES 6,274 every six months, after tax, for 14.8 years
At this auction KES 100,000 of face value cost about KES 102,360 (price 102.360 per 100), and the yield that implies is 13.94% a year. The coupon is 13.94%: KES 13,942 a year on KES 100,000 of face value, paid in two halves, KES 12,548 after 10% withholding tax.
Held to maturity (2037-04-06), that is about KES 185,409 in coupons, plus KES -2,360 loss between what you paid and the KES 100,000 repaid; roughly KES 183,049 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2022/003 | tap | 11.766% | 11.766% | 2.8 | KES 3.62bn | KES 3.62bn | 102.448 |
| FXD1/2022/015 | tap | 13.942% | 13.942% | 14.8 | KES 15.99bn | KES 15.98bn | 102.360 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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