Kenya Treasury bonds · auction of 25 March 2024
Kenya bond auction, 25 March 2024: FXD1/2023/005 at 18.410%
The Central Bank of Kenya's bond auction dated 25 March 2024 was a re-opening of FXD1/2023/005 and FXD1/2024/010.
Bids came to KES 59.7bn against KES 40.0bn on offer (149% subscribed), and the Treasury accepted KES 22.6bn.
FXD1/2023/005 cleared at 18.410%, against a 16.844% coupon, with 4.3 years to maturity. Its previous sale, on 22 January 2024, priced at 18.770%, so the yield is down 36 basis points.
FXD1/2024/010 cleared at 16.519%, against a 16.000% coupon, with 10.0 years to maturity.
What this means for KES 100,000 of FXD1/2023/005
Worked from the published result · information, not advice
KES 7,159 every six months, after tax, for 4.3 years
At this auction KES 100,000 of face value cost about KES 98,629 (price 98.629 per 100), and the yield that implies is 18.41% a year. The coupon is 16.84%: KES 16,844 a year on KES 100,000 of face value, paid in two halves, KES 14,317 after 15% withholding tax.
Held to maturity (2028-07-10), that is about KES 61,464 in coupons, plus KES 1,371 gain between what you paid and the KES 100,000 repaid; roughly KES 62,835 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 | 18.410% | 16.844% | 4.3 | KES 35.85bn | KES 17.77bn | 98.629 |
| FXD1/2024/010 | reopening | 16.519% | 16.000% | 10.0 | KES 23.89bn | KES 4.84bn | 97.501 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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