Kenya Treasury bonds · auction of 10 June 2024
Kenya bond auction, 10 June 2024: FXD1/2024/003 at 17.586%
The Central Bank of Kenya's bond auction dated 10 June 2024 was a re-opening of FXD1/2023/002 and FXD1/2024/003.
Bids came to KES 32.8bn against KES 30.0bn on offer (109% subscribed), and the Treasury accepted KES 30.9bn.
FXD1/2023/002 cleared at 17.122%, against a 16.972% coupon, with 1.2 years to maturity. Its previous sale, on 22 April 2024, priced at 16.992%, so the yield is up 13 basis points.
FXD1/2024/003 cleared at 17.586%, against a 18.385% coupon, with 2.6 years to maturity. Its previous sale, on 11 March 2024, priced at 18.422%, so the yield is down 84 basis points.
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 2.6 years
At this auction KES 100,000 of face value cost about KES 108,975 (price 108.975 per 100), and the yield that implies is 17.59% 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 40,433 in coupons, plus KES -8,975 loss between what you paid and the KES 100,000 repaid; roughly KES 31,458 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 | 17.122% | 16.972% | 1.2 | KES 8.45bn | KES 7.08bn | 104.983 |
| FXD1/2024/003 | reopening | 17.586% | 18.385% | 2.6 | KES 24.39bn | KES 23.81bn | 108.975 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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