Kenya Treasury bonds · auction of 23 January 2023
Kenya bond auction, 23 January 2023: FXD1/2020/005 at 12.879%
The Central Bank of Kenya's bond auction dated 23 January 2023 was a tap sale of FXD1/2020/005 and FXD1/2022/015.
Bids came to KES 18.0bn against KES 10.0bn on offer (180% subscribed), and the Treasury accepted KES 17.6bn.
FXD1/2020/005 cleared at 12.879%, against a 11.667% coupon, with 2.3 years to maturity. Its previous sale, on 16 January 2023, priced at 12.879%, so the yield is unchanged.
FXD1/2022/015 cleared at 14.186%, against a 13.942% coupon, with 14.2 years to maturity. Its previous sale, on 16 January 2023, priced at 14.186%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2020/005
Worked from the published result · information, not advice
KES 4,958 every six months, after tax, for 2.3 years
At this auction KES 100,000 of face value cost about KES 100,085 (price 100.085 per 100), and the yield that implies is 12.88% a year. The coupon is 11.67%: KES 11,667 a year on KES 100,000 of face value, paid in two halves, KES 9,917 after 15% withholding tax.
Held to maturity (2025-05-05), that is about KES 22,617 in coupons, plus KES -85 loss between what you paid and the KES 100,000 repaid; roughly KES 22,532 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/005 | tap | 12.879% | 11.667% | 2.3 | KES 13.90bn | KES 13.57bn | 100.085 |
| FXD1/2022/015 | tap | 14.186% | 13.942% | 14.2 | KES 4.12bn | KES 4.06bn | 101.950 |
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.