The government’s seven-year Rwf10 billion infrastructure bond has been oversubscribed by 103.03 per cent, with investors from non-financial institutions taking the lion’s share, a central bank statement indicates. The success of the issuance was attributed to ongoing campaigns across the country aimed at educating the population the culture of saving and the benefits of investing in government Treasury bonds, Rwangombwa, the National Bank of Rwanda (BNR) governor, said in the statement.

Of the 58 applications were received, retailers and individual investor represented 5.86 per cent participation rate, foreigners  (2.41 per cent), while investors from banks scooped 10 per cent. Non-financial institutional investors dominated, taking 84.14 per cent of the total amount offered, an increase of from 44.58 per cent during the February, 2017 TB issuance.

Participation of retail investors has, however, dropped from a record high of 19.51 per cent in February, and that of banks by 35.91 per cent. The TB will has a coupon rate of 12.675 per cent, payable semi-annually.  The bond issuance is part of government’s quarterly programme to fund infrastructure projects and help develop the local financial market. The TB will be listed on the Rwanda Stock Market on Tuesday, May 30, and the next TB issuance is slated for August 21, according to BNR.