Kenya Treasury bonds · auction of 13 February 2023
Kenya bond auction, 13 February 2023: FXD1/2023/010 at 14.151%
The Central Bank of Kenya's bond auction dated 13 February 2023 was a re-opening of FXD1/2017/010 and FXD1/2023/010.
Bids came to KES 19.5bn against KES 50.0bn on offer (39% subscribed), and the Treasury accepted KES 16.7bn.
FXD1/2017/010 cleared at 13.875%, against a 12.966% coupon, with 4.4 years to maturity. Its previous sale, on 10 October 2022, priced at 13.369%, so the yield is up 51 basis points.
FXD1/2023/010 cleared at 14.151%, against a 14.151% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD1/2023/010
Worked from the published result · information, not advice
KES 6,014 every six months, after tax, for 10.0 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 14.15% a year. The coupon is 14.15%: KES 14,151 a year on KES 100,000 of face value, paid in two halves, KES 12,028 after 15% withholding tax.
Held to maturity (2033-01-31), that is about KES 119,872 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 119,872 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 | 13.875% | 12.966% | 4.4 | KES 8.03bn | KES 7.47bn | 97.785 |
| FXD1/2023/010 | reopening | 14.151% | 14.151% | 10.0 | KES 11.51bn | KES 9.28bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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