NewsEast & Horn AfricaLocally listed Rwandan bond oversubscribed

Tue,22Jan2019

Posted on Friday, 28 February 2014 09:45

Locally listed Rwandan bond oversubscribed

Rwanda said on Friday a locally listed, three-year bond worth 12.5 billion francs (about $18.5 million) that went on sale this month was oversubcribed and said it planned further issues of government bonds in May, August and November this year.

 

Rwanda has one of the fastest growth rates in east Africa and lowest debt levels.

In a bid to cut dependence on donors it successfully issued a $400 million Eurobond last year.

The government is committed to the regular issuance of government bonds in a bid to develop the capital market

But its bond market is small and inactive, and part of the reason for the latest issue was to revive the bond market.

The coupon rate was 11.475 percent and yield was 11.625 percent, the Finance Ministry said in a statement.

Bids were split between institutional and retail investors.

Most investors were local, with some regional ones.

"The government is committed to the regular issuance of government bonds in a bid to develop the capital market and to promote the culture of long term savings through the securities market," Finance Minister Claver Gatete told a news conference.

He also outlined the timetable for planned future issues this year.

The bond will be listed on the stock exchange on March 7.



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