Kenya Treasury bonds · auction of 25 July 2022
Kenya bond auction, 25 July 2022: FXD2/2013/015 at 13.214%
The Central Bank of Kenya's bond auction dated 25 July 2022 was a re-opening of FXD2/2013/015 and FXD2/2018/015.
Bids came to KES 10.6bn against KES 40.0bn on offer (26% subscribed), and the Treasury accepted KES 9.3bn.
FXD2/2013/015 cleared at 13.214%, against a 12.000% coupon, with 5.7 years to maturity. Its previous sale, on 23 November 2020, priced at 11.445%, so the yield is up 177 basis points.
FXD2/2018/015 cleared at 13.888%, against a 12.750% coupon, with 11.2 years to maturity. Its previous sale, on 5 November 2018, priced at 12.734%, so the yield is up 115 basis points.
What this means for KES 100,000 of FXD2/2013/015
Worked from the published result · information, not advice
KES 5,100 every six months, after tax, for 5.7 years
At this auction KES 100,000 of face value cost about KES 98,409 (price 98.409 per 100), and the yield that implies is 13.21% a year. The coupon is 12.00%: KES 12,000 a year on KES 100,000 of face value, paid in two halves, KES 10,200 after 15% withholding tax.
Held to maturity (2028-04-10), that is about KES 58,254 in coupons, plus KES 1,591 gain between what you paid and the KES 100,000 repaid; roughly KES 59,845 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2013/015 | reopening | 13.214% | 12.000% | 5.7 | KES 5.45bn | KES 5.22bn | 98.409 |
| FXD2/2018/015 | reopening | 13.888% | 12.750% | 11.2 | KES 5.12bn | KES 4.09bn | 96.999 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.