Kenya has increased the sale of Treasury bonds for budgetary support as investors' appetite for the securities soars.

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 total.

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.

Source : XINHUA