With the economy showing good signs, Rwanda Government through Central Bank has returned to the market with the reopening of Rwf15 billion Treasury bond.
The bond, which will be rediscounted at 3%, is purposely issued for Capital Market development, Central Bank said in a statement yesterday.
Rwanda’s bourse recently hit a $1 billion mark – showing signs it could even grow above 20% every year, according to its Chief Executive Officer Celestin Rwabukumba.
“We would like to inform the public that on behalf of @RwandaGov there is a Reopen of 7-year T-Bond worth 15.0 billion. The market will be open from Monday January 20, 2020 to Wednesday January 22, 2020. Please refer to the prospectus for detailed information,” Central Bank said yesterday.
Government has previous issued several bonds to boost the Capital Market – the youngest in East Africa.
Since 2014, the Bank has been issuing treasury bonds worth billions to support the country’s projects.
Since then, more than twenty-one bonds have been issued and listed on the Rwanda Stock Exchange which, the Bank says, has yielded good subscription level with an average subscription of 197.1%.
Institutional investors dominate the subscription rate compared to individual investors.
According to Central Bank, institutional investors held a share of 53.6% of the total outstanding as end of June 2019 compared to banks (36.0%) and retailers (10.4%).