Kenya Treasury bonds · auction of 12 December 2022
Kenya bond auction, 12 December 2022: FXD1/2008/020 at 13.830%
The Central Bank of Kenya's bond auction dated 12 December 2022 was a re-opening of FXD1/2008/020 and FXD1/2022/025.
Bids came to KES 30.6bn against KES 40.0bn on offer (76% subscribed), and the Treasury accepted KES 24.3bn.
FXD1/2008/020 cleared at 13.830%, against a 13.750% coupon, with 5.5 years to maturity. Its previous sale, on 28 November 2016, priced at 14.257%, so the yield is down 43 basis points.
FXD1/2022/025 cleared at 14.439%, against a 14.188% coupon, with 24.8 years to maturity. Its previous sale, on 24 October 2022, priced at 14.188%, so the yield is up 25 basis points.
What this means for KES 100,000 of FXD1/2008/020
Worked from the published result · information, not advice
KES 5,844 every six months, after tax, for 5.5 years
At this auction KES 100,000 of face value cost about KES 99,699 (price 99.699 per 100), and the yield that implies is 13.83% a year. The coupon is 13.75%: KES 13,750 a year on KES 100,000 of face value, paid in two halves, KES 11,688 after 15% withholding tax.
Held to maturity (2028-06-05), that is about KES 64,061 in coupons, plus KES 301 gain between what you paid and the KES 100,000 repaid; roughly KES 64,362 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2008/020 | reopening | 13.830% | 13.750% | 5.5 | KES 17.32bn | KES 17.27bn | 99.699 |
| FXD1/2022/025 | reopening | 14.439% | 14.188% | 24.8 | KES 13.24bn | KES 7.07bn | 100.177 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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