Kenya Treasury bonds · auction of 24 June 2024
Kenya bond auction, 24 June 2024: FXD1/2023/005 at 18.165%
The Central Bank of Kenya's bond auction dated 24 June 2024 was a tap sale of FXD1/2023/002, FXD1/2023/005, FXD1/2023/010 and FXD1/2024/003.
Bids came to KES 25.1bn against KES 20.0bn on offer (126% subscribed), and the Treasury accepted KES 23.9bn.
FXD1/2023/002 cleared at 17.122%, against a 16.972% coupon, with 1.1 years to maturity. Its previous sale, on 10 June 2024, priced at 17.122%, so the yield is unchanged.
FXD1/2023/005 cleared at 18.165%, against a 16.844% coupon, with 4.0 years to maturity. Its previous sale, on 17 June 2024, priced at 18.165%, so the yield is unchanged.
FXD1/2023/010 cleared at 16.392%, against a 14.151% coupon, with 8.6 years to maturity. Its previous sale, on 17 June 2024, priced at 16.392%, so the yield is unchanged.
FXD1/2024/003 cleared at 17.586%, against a 18.385% coupon, with 2.5 years to maturity. Its previous sale, on 10 June 2024, priced at 17.586%, so the yield is unchanged.
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 4.0 years
At this auction KES 100,000 of face value cost about KES 103,733 (price 103.733 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 57,897 in coupons, plus KES -3,733 loss between what you paid and the KES 100,000 repaid; roughly KES 54,164 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 | tap | 17.122% | 16.972% | 1.1 | KES 1.80bn | KES 1.80bn | 105.649 |
| FXD1/2023/005 | tap | 18.165% | 16.844% | 4.0 | KES 11.23bn | KES 10.81bn | 103.733 |
| FXD1/2023/010 | tap | 16.392% | 14.151% | 8.6 | KES 8.84bn | KES 7.94bn | 94.950 |
| FXD1/2024/003 | tap | 17.586% | 18.385% | 2.5 | KES 3.27bn | KES 3.32bn | 109.684 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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