Kenya’s banking regulator on Tuesday closed the sale of additional debt for an infrastructure bond first issued in September after the auction attracted bids worth Ksh15.99 billion ($188.2 million).

The regulator had advertised for Ksh16 billion ($188.2 million) to be offered through tap sales, a process that allows the selling of additional debt from past issues at original terms including the original coupon rate and tenor but at the current market price.

The sales had been scheduled to happen in October, November and December or until the required amount is raised.

“The Central Bank of Kenya (CBK) wishes to announce the closure of tap sale following the attainment of the quantum amount of Ksh16 billion advertised…The sale period commenced on October 1 and was to close on either attainment of the quantum on offer or expiry of the sale period, whichever comes first,” said the regulator in a statement.

The 12-year government infrastructure bond is paying interest at an annual rate of 11 per cent every six months but its coupon payments and discount will be tax free.

The average yield of the accepted bids under the tap sales is 12.363 and investors will be required to pay Ksh94,155 for every Ksh100,000 ($1,177), a slight variation related to the passage of time, from the Ksh93,290 ($1,067) investors paid for the original bond issued in September.

Last month’s auction, which was seeking Ksh20 billion ($228 million), attracted bids worth Ksh37.62 billion ($430.4 million), almost double the amount that the banking regulator was seeking, but only Ksh19.92 billion ($234.4 million) was accepted.

READ: Kenya infrastructure bond auction attracts $430.4m

According to the bond prospectus, the government is intending to spend Ksh10.1136 billion ($115.5 million) to fund water, sewerage and irrigation projects, Ksh14.2784 billion ($163.09 million) to develop transport infrastructure and Ksh11.6334 billion ($132.8 million) for energy projects.

The proceeds from the bond will partially finance these projects.

CBK last sold an infrastructure bond in October 2011 when it issued Ksh14.13 billion ($140.71 million) in debt to fund various projects country wide.

The coupon rate on the current bond is however lower than the 12 per cent annual rate being paid by the last infrastructure bond issued in 2011 but higher than the 6 per cent annual rate that is being paid by the one issued in 2010.

READ: Kenya tests regional debt market with $268m bonds

CBK will pay down 28.074 per cent of outstanding principal amount of the current bond on September 25, 2017 a further 44.896 per cent of outstanding principal amount on September 20, 2021 and the balance on September 15, 2025.