Kenya Treasury bonds · auction of 10 October 2022
Kenya bond auction, 10 October 2022: FXD1/2017/010 at 13.369%
The Central Bank of Kenya's bond auction dated 10 October 2022 was a re-opening of FXD1/2017/010 and FXD1/2020/015.
Bids came to KES 18.8bn against KES 40.0bn on offer (47% subscribed), and the Treasury accepted KES 15.1bn.
FXD1/2017/010 cleared at 13.369%, against a 12.966% coupon, with 4.8 years to maturity. Its previous sale, on 18 December 2017, priced at 13.087%, so the yield is up 28 basis points.
FXD1/2020/015 cleared at 13.970%, against a 12.756% coupon, with 12.3 years to maturity. Its previous sale, on 21 March 2022, priced at 13.732%, so the yield is up 24 basis points.
What this means for KES 100,000 of FXD1/2017/010
Worked from the published result · information, not advice
KES 5,511 every six months, after tax, for 4.8 years
At this auction KES 100,000 of face value cost about KES 101,299 (price 101.299 per 100), and the yield that implies is 13.37% a year. The coupon is 12.97%: KES 12,966 a year on KES 100,000 of face value, paid in two halves, KES 11,021 after 15% withholding tax.
Held to maturity (2027-07-19), that is about KES 52,594 in coupons, plus KES -1,299 loss between what you paid and the KES 100,000 repaid; roughly KES 51,295 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2017/010 | reopening | 13.369% | 12.966% | 4.8 | KES 17.26bn | KES 14.11bn | 101.299 |
| FXD1/2020/015 | reopening | 13.970% | 12.756% | 12.3 | KES 1.54bn | KES 1.01bn | 94.621 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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