Kenya Treasury bonds · auction of 20 February 2023
Kenya bond auction, 20 February 2023: FXD1/2017/010 at 13.875%
The Central Bank of Kenya's bond auction dated 20 February 2023 was a tap sale of FXD1/2017/010 and FXD1/2023/010.
Bids came to KES 12.5bn against KES 10.0bn on offer (125% subscribed), and the Treasury accepted KES 12.2bn.
FXD1/2017/010 cleared at 13.875%, against a 12.966% coupon, with 4.4 years to maturity. Its previous sale, on 13 February 2023, priced at 13.875%, so the yield is unchanged.
FXD1/2023/010 cleared at 14.151%, against a 14.151% coupon, with 9.9 years to maturity. Its previous sale, on 13 February 2023, priced at 14.151%, so the yield is unchanged.
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 4.4 years
At this auction KES 100,000 of face value cost about KES 98,037 (price 98.037 per 100), and the yield that implies is 13.88% 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 48,580 in coupons, plus KES 1,963 gain between what you paid and the KES 100,000 repaid; roughly KES 50,543 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 | tap | 13.875% | 12.966% | 4.4 | KES 8.86bn | KES 8.59bn | 98.037 |
| FXD1/2023/010 | tap | 14.151% | 14.151% | 9.9 | KES 3.61bn | KES 3.61bn | 100.263 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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