Rwanda, World Bank to Launch $40M Bond

A wide view of Rwanda’s capital Kigali. The World Bank has supported several infrastructure projects in the country. Photo: Plaisir Muzogeye

Rwanda government and the World Bank have announced they will launch a 3-year, fixed-rate, RWF-denominated bond worth $40 million at the London Stock Exchange.

This was announced on Monday during the UK-Africa Investment Summit which started in London.

The government did not provide more details regarding what the bond will be used for. Rwanda’s Finance Minister Dr Uziel Ndagijimana met and held talks with Anshula Kant – World Bank Managing Director and Chief Finance Officer who is in the country on a two-day official visit “to strengthen existing partnerships with Rwanda in various sectors of the economy,” according to the Ministry.

Finance Minister Dr Uziel Ndagijimana meeting Anshula Kant – World Bank Managing Director and Chief Finance Officer in Kigali on Monday.

In 2013, Rwanda secured $400 million Eurobond to fund its infrastructure projects, with repayment expected in 2023.

Speaking in an interview with Bloomberg at the US-Africa Leaders Summit in Washington a year later (2014), President Kagame said his government would sell its second international bond of as much as $1 billion to fund the construction of an airport and power plants.

In December last year, Qatar Airways agreed to take a 60% stake in the project to build an international airport in Bugesera, Eastern Province, which is wholly valued at $1.3 billion. Under the deal signed, Rwanda will raise the remaining 40%.

In London, United Kingdom, President Paul Kagame and his delegation are attending the summit which seeks to revise UK-Africa investment policies.

The President joined other African leaders at the summit hosted by UK Prime Minister Boris Johnson.

Kagame is expected to attend the Summit opening and to participate in the Trade and Investment Session alongside Presidents Peter Mutharika of Malawi and Alpha Condé of Guinea, as well as the UK Secretary for International Trade, Liz Truss.

Kagame’s delegation included members of the Private sector and leaders of bankable investment projects in the country.

Those attending the summit with President Kagame are Bank of Kigali – the country’s biggest bank in terms of assets, Urwibutso – a local private Agribusiness-led enterprise and Mara Phones Manufacturing Plant – the first-night tech smartphone manufacturer in Rwanda and on the continent.

Others include Rwanda Finance Ltd (KIFC), Ampersand, Cogebanque, Africa Improved Foods, and Water Access Rwanda.

With the UK being the second-largest foreign investor in Rwanda with $448 million invested in the last four years, the country eyes more British investors to tap into available investment opportunities.

Meanwhile, the launch of the bond by Rwanda and the World Bank comes at a time when the International Monetary Fund (IMF) announced Rwanda’s economy will grow at an 8 percent rate this year and 2021 against an estimated 8.5% last year.

IMF said the growth will be triggered by private investment and trade.