Kenya Treasury bonds · auction of 21 August 2023
Kenya bond auction, 21 August 2023: FXD1/2023/002 at 16.972%
The Central Bank of Kenya's bond auction dated 21 August 2023 was a re-opening of FXD1/2023/002 and FXD1/2023/005.
Bids came to KES 53.0bn against KES 40.0bn on offer (133% subscribed), and the Treasury accepted KES 19.1bn.
FXD1/2023/002 cleared at 16.972%, against a 16.972% coupon, with 2.0 years to maturity.
FXD1/2023/005 cleared at 17.954%, against a 16.844% coupon, with 4.9 years to maturity. Its previous sale, on 24 July 2023, priced at 16.844%, so the yield is up 111 basis points.
What this means for KES 100,000 of FXD1/2023/002
Worked from the published result · information, not advice
KES 7,213 every six months, after tax, for 2.0 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 16.97% a year. The coupon is 16.97%: KES 16,972 a year on KES 100,000 of face value, paid in two halves, KES 14,426 after 15% withholding tax.
Held to maturity (2025-08-18), that is about KES 28,754 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 28,754 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2023/002 | reopening | 16.972% | 16.972% | 2.0 | KES 38.30bn | KES 11.66bn | 100.000 |
| FXD1/2023/005 | reopening | 17.954% | 16.844% | 4.9 | KES 14.70bn | KES 7.46bn | 98.043 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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