Govt to issue five-year Rwf15bn Treasury bond

The government will sell a five-year Treasury bond worth Rwf15 billion this month to fund infrastructure projects, according to a bid notice by the central bank.

Monday, February 05, 2018

The government will sell a five-year Treasury bond worth Rwf15 billion this month to fund infrastructure projects, according to a bid notice by the central bank.

Bids for the bond, whose coupon will be market-determined, will be received from February 21 to February 23, the notice indicates.

The TB sale is under the government’s quarterly issuance programme that started in 2014 to raise money to fund infrastructure projects. The programme also seeks to develop the local capital market. According to the central bank, the bond will be listed on the Rwandan Stock Exchange’s secondary market on February 27.

Government has been issuing regular bonds since 2014 under its quarterly TB issuance programme to fund infrastructure projects and support development of the local capital market.

The previous TB issuance in November 2017 received one of the top subscription rates at 178.14 per cent or 66 applications from retail, banks and institutional investors. Rwanda’s external borrowing was 36 per cent and domestic stood at 10 per cent of its gross domestic product by the end of last year.