Kenya Treasury bonds · auction of 15 January 2024
Kenya bond auction, 15 January 2024: FXD1/2024/003 at 18.385%
The Central Bank of Kenya's bond auction dated 15 January 2024 was a re-opening of FXD1/2023/005 and FXD1/2024/003.
Bids came to KES 37.2bn against KES 35.0bn on offer (106% subscribed), and the Treasury accepted KES 25.0bn.
FXD1/2023/005 cleared at 18.770%, against a 16.844% coupon, with 4.5 years to maturity. Its previous sale, on 16 October 2023, priced at 17.992%, so the yield is up 78 basis points.
FXD1/2024/003 cleared at 18.385%, against a 18.385% coupon, with 3.0 years to maturity.
What this means for KES 100,000 of FXD1/2024/003
Worked from the published result · information, not advice
KES 7,814 every six months, after tax, for 3.0 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 18.39% a year. The coupon is 18.39%: KES 18,385 a year on KES 100,000 of face value, paid in two halves, KES 15,628 after 15% withholding tax.
Held to maturity (2027-01-11), that is about KES 46,722 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 46,722 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2023/005 | reopening | 18.770% | 16.844% | 4.5 | KES 8.06bn | KES 2.95bn | 94.317 |
| FXD1/2024/003 | reopening | 18.385% | 18.385% | 3.0 | KES 29.09bn | KES 22.07bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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