Kenya Treasury bonds · auction of 17 June 2024
Kenya bond auction, 17 June 2024: FXD1/2023/005 at 18.165%
The Central Bank of Kenya's bond auction dated 17 June 2024 was a re-opening of FXD1/2023/005 and FXD1/2023/010.
Bids came to KES 41.6bn against KES 30.0bn on offer (139% subscribed), and the Treasury accepted KES 30.2bn.
FXD1/2023/005 cleared at 18.165%, against a 16.844% coupon, with 4.1 years to maturity. Its previous sale, on 8 April 2024, priced at 18.410%, so the yield is down 25 basis points.
FXD1/2023/010 cleared at 16.392%, against a 14.151% coupon, with 8.6 years to maturity. Its previous sale, on 20 February 2023, priced at 14.151%, so the yield is up 224 basis points.
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 4.1 years
At this auction KES 100,000 of face value cost about KES 103,387 (price 103.387 per 100), and the yield that implies is 18.16% 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 58,171 in coupons, plus KES -3,387 loss between what you paid and the KES 100,000 repaid; roughly KES 54,784 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 | 18.165% | 16.844% | 4.1 | KES 31.94bn | KES 22.59bn | 103.387 |
| FXD1/2023/010 | reopening | 16.392% | 14.151% | 8.6 | KES 9.62bn | KES 7.58bn | 94.663 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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