Kenya Treasury bonds · auction of 10 April 2023
Kenya bond auction, 10 April 2023: FXD2/2018/010 at 14.366%
The Central Bank of Kenya's bond auction dated 10 April 2023 was a primary issue of FXD2/2018/010.
Bids came to KES 3.6bn against KES 20.0bn on offer (18% subscribed), and the Treasury accepted KES 3.4bn.
FXD2/2018/010 cleared at 14.366%, against a 12.502% coupon, with 5.7 years to maturity. Its previous sale, on 24 January 2022, priced at 12.561%, so the yield is up 180 basis points.
What this means for KES 100,000 of FXD2/2018/010
Worked from the published result · information, not advice
KES 5,313 every six months, after tax, for 5.7 years
At this auction KES 100,000 of face value cost about KES 96,970 (price 96.970 per 100), and the yield that implies is 14.37% a year. The coupon is 12.50%: KES 12,502 a year on KES 100,000 of face value, paid in two halves, KES 10,627 after 15% withholding tax.
Held to maturity (2028-12-04), that is about KES 60,080 in coupons, plus KES 3,030 gain between what you paid and the KES 100,000 repaid; roughly KES 63,110 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 |
|---|---|---|---|---|---|---|---|
| FXD2/2018/010 | primary | 14.366% | 12.502% | 5.7 | KES 3.57bn | KES 3.36bn | 96.970 |
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.