NAIROBI (Xinhua) --
Kenya has increased the sale of Treasury bonds
for budgetary support as investors’ appetite for the securities
The East African nation this month is floating a
10-year bond worth 250 million U.S. dollars to help fill a 6.8
billion U.S. dollars deficit in its 23 billion dollars budget,
barely a month after selling another worth 300 million dollars.
On Friday, a prospectus from the Central Bank of Kenya (CBK)
on the new bond offer said the security will be sold between
Aug.12 and 23.
"The Central Bank, acting in its capacity as a fiscal agent
for the Republic of Kenya, invites bids for the bond, whose
purpose is budgetary support," said CBK.
The sale of the bond to be listed at the Nairobi Securities
Exchange comes at a time when subscription on both the long-term
and short-term papers is high.
Last month, the 300-million-dollar bond, whose yield stood at
15 percent, attracted bids worth 408 million dollars.
Treasury accepted bids worth 335 million dollars, 35 million
dollars more than it had sought.
Unlike the July bond, which had a fixed interest rate, the
August bond’s yield will be determined by the market through
auction, according to the Central Bank.
Investors for the 250 million dollars bond will further pay a
withholding tax of 10 percent.
As the bond, investors’ appetite for the 91, 182 and 364 days
Treasury bills too remains high.
This week, as in the past, the CBK put up for sale 91, 182
and 364 days Treasury bills valued at 160 million dollars in
The 364-day and 184-day Treasury bills worth 120 million
dollars attracted bids worth 152 million dollars as investors’
sought to cash in on rising rates.
Treasury accepted bids worth 106 million dollars.
On the other hand, the 91-day floated was valued at 40
million dollars and offered an 8.4 percent return.
Treasury received bids worth 140 million dollars and accepted
115 million dollars.