Kenya Treasury bonds · auction of 22 August 2022
Kenya bond auction, 22 August 2022: FXD1/2022/003 at 12.445%
The Central Bank of Kenya's bond auction dated 22 August 2022 was a re-opening of FXD1/2021/020, FXD1/2022/003 and FXD2/2019/010.
Bids came to KES 49.1bn against KES 50.0bn on offer (98% subscribed), and the Treasury accepted KES 38.5bn.
FXD1/2021/020 cleared at 13.963%, against a 13.444% coupon, with 18.9 years to maturity. Its previous sale, on 24 January 2022, priced at 13.792%, so the yield is up 17 basis points.
FXD1/2022/003 cleared at 12.445%, against a 11.766% coupon, with 2.6 years to maturity. Its previous sale, on 27 June 2022, priced at 11.766%, so the yield is up 68 basis points.
FXD2/2019/010 cleared at 13.884%, against a 12.300% coupon, with 6.6 years to maturity. Its previous sale, on 15 April 2019, priced at 12.300%, so the yield is up 158 basis points.
What this means for KES 100,000 of FXD1/2022/003
Worked from the published result · information, not advice
KES 5,001 every six months, after tax, for 2.6 years
At this auction KES 100,000 of face value cost about KES 102,777 (price 102.777 per 100), and the yield that implies is 12.45% a year. The coupon is 11.77%: KES 11,766 a year on KES 100,000 of face value, paid in two halves, KES 10,001 after 15% withholding tax.
Held to maturity (2025-04-07), that is about KES 26,259 in coupons, plus KES -2,777 loss between what you paid and the KES 100,000 repaid; roughly KES 23,482 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2021/020 | reopening | 13.963% | 13.444% | 18.9 | KES 18.35bn | KES 7.95bn | 96.820 |
| FXD1/2022/003 | reopening | 12.445% | 11.766% | 2.6 | KES 21.82bn | KES 21.80bn | 102.777 |
| FXD2/2019/010 | reopening | 13.884% | 12.300% | 6.6 | KES 8.96bn | KES 8.78bn | 97.727 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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