Kenya Treasury bonds · auction of 24 October 2022
Kenya bond auction, 24 October 2022: FXD1/2022/025 at 14.188%
The Central Bank of Kenya's bond auction dated 24 October 2022 was a primary issue of FXD1/2022/025.
Bids came to KES 14.9bn against KES 20.0bn on offer (74% subscribed), and the Treasury accepted KES 13.7bn.
FXD1/2022/025 cleared at 14.188%, against a 14.188% coupon, with 24.9 years to maturity.
What this means for KES 100,000 of FXD1/2022/025
Worked from the published result · information, not advice
KES 6,385 every six months, after tax, for 24.9 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 14.19% a year. The coupon is 14.19%: KES 14,188 a year on KES 100,000 of face value, paid in two halves, KES 12,769 after 10% withholding tax.
Held to maturity (2047-09-23), that is about KES 318,137 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 318,137 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2022/025 | primary | 14.188% | 14.188% | 24.9 | KES 14.89bn | KES 13.67bn | 100.000 |
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.