Kenya Treasury bonds · auction of 19 September 2022
Kenya bond auction, 19 September 2022: FXD1/2022/010 at 13.949%
The Central Bank of Kenya's bond auction dated 19 September 2022 was a re-opening of FXD1/2022/010 and FXD1/2022/015.
Bids came to KES 46.1bn against KES 50.0bn on offer (92% subscribed), and the Treasury accepted KES 39.0bn.
FXD1/2022/010 cleared at 13.949%, against a 13.490% coupon, with 9.6 years to maturity. Its previous sale, on 23 May 2022, priced at 13.490%, so the yield is up 46 basis points.
FXD1/2022/015 cleared at 13.983%, against a 13.942% coupon, with 14.5 years to maturity. Its previous sale, on 27 June 2022, priced at 13.942%, so the yield is up 4 basis points.
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 9.6 years
At this auction KES 100,000 of face value cost about KES 102,226 (price 102.226 per 100), and the yield that implies is 13.95% 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 110,317 in coupons, plus KES -2,226 loss between what you paid and the KES 100,000 repaid; roughly KES 108,091 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2022/010 | reopening | 13.949% | 13.490% | 9.6 | KES 28.52bn | KES 25.62bn | 102.226 |
| FXD1/2022/015 | reopening | 13.983% | 13.942% | 14.5 | KES 17.62bn | KES 13.41bn | 105.341 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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