Kenya Treasury bonds · auction of 24 April 2023
Kenya bond auction, 24 April 2023: FXD1/2022/003 at 13.471%
The Central Bank of Kenya's bond auction dated 24 April 2023 was a re-opening of FXD1/2022/003.
Bids came to KES 7.3bn against KES 30.0bn on offer (24% subscribed), and the Treasury accepted KES 1.8bn.
FXD1/2022/003 cleared at 13.471%, against a 11.766% coupon, with 2.0 years to maturity. Its previous sale, on 22 August 2022, priced at 12.445%, so the yield is up 103 basis points.
What this means for KES 100,000 of FXD1/2022/003
Worked from the published result · information, not advice
KES 5,001 every six months, after tax, for 2.0 years
At this auction KES 100,000 of face value cost about KES 97,583 (price 97.583 per 100), and the yield that implies is 13.47% a year. The coupon is 11.77%: KES 11,766 a year on KES 100,000 of face value, paid in two halves, KES 10,001 after 15% withholding tax.
Held to maturity (2025-04-07), that is about KES 19,550 in coupons, plus KES 2,417 gain between what you paid and the KES 100,000 repaid; roughly KES 21,967 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2022/003 | reopening | 13.471% | 11.766% | 2.0 | KES 7.33bn | KES 1.76bn | 97.583 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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