Kenya Treasury bonds · auction of 18 September 2023
Kenya bond auction, 18 September 2023: FXD1/2023/002 at 17.454%
The Central Bank of Kenya's bond auction dated 18 September 2023 was a re-opening of FXD1/2016/010 and FXD1/2023/002.
Bids came to KES 34.0bn against KES 35.0bn on offer (97% subscribed), and the Treasury accepted KES 21.6bn.
FXD1/2016/010 cleared at 17.927%, against a 15.039% coupon, with 2.9 years to maturity. Its previous sale, on 24 July 2023, priced at 16.328%, so the yield is up 160 basis points.
FXD1/2023/002 cleared at 17.454%, against a 16.972% coupon, with 1.9 years to maturity. Its previous sale, on 28 August 2023, priced at 16.972%, so the yield is up 48 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 1.9 years
At this auction KES 100,000 of face value cost about KES 100,501 (price 100.501 per 100), and the yield that implies is 17.45% 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 27,648 in coupons, plus KES -501 loss between what you paid and the KES 100,000 repaid; roughly KES 27,147 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 | reopening | 17.927% | 15.039% | 2.9 | KES 15.99bn | KES 6.62bn | 94.759 |
| FXD1/2023/002 | reopening | 17.454% | 16.972% | 1.9 | KES 18.01bn | KES 15.01bn | 100.501 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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