Kenya Treasury bonds · auction of 24 July 2023
Kenya bond auction, 24 July 2023: FXD1/2016/010 at 16.328%
The Central Bank of Kenya's bond auction dated 24 July 2023 was a tap sale of FXD1/2016/010 and FXD1/2023/005.
Bids came to KES 44.4bn against KES 20.0bn on offer (222% subscribed), and the Treasury accepted KES 43.4bn.
FXD1/2016/010 cleared at 16.328%, against a 15.039% coupon, with 3.1 years to maturity. Its previous sale, on 17 July 2023, priced at 16.328%, so the yield is unchanged.
FXD1/2023/005 cleared at 16.844%, against a 16.844% coupon, with 5.0 years to maturity. Its previous sale, on 17 July 2023, priced at 16.844%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2016/010
Worked from the published result · information, not advice
KES 6,392 every six months, after tax, for 3.1 years
At this auction KES 100,000 of face value cost about KES 103,300 (price 103.300 per 100), and the yield that implies is 16.33% a year. The coupon is 15.04%: KES 15,039 a year on KES 100,000 of face value, paid in two halves, KES 12,783 after 15% withholding tax.
Held to maturity (2026-08-17), that is about KES 39,198 in coupons, plus KES -3,300 loss between what you paid and the KES 100,000 repaid; roughly KES 35,898 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/010 | tap | 16.328% | 15.039% | 3.1 | KES 32.22bn | KES 31.23bn | 103.300 |
| FXD1/2023/005 | tap | 16.844% | 16.844% | 5.0 | KES 12.21bn | KES 12.21bn | 100.311 |
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.