The Government of Rwanda is back to the Market with a ten-year Treasury bond worth Rwf 10 billion to fund infrastructure projects, the central bank released on its website.
Bids for the bond, whose coupon will be determined by the market, will be received from May 21- 23. It will be listed on the Rwandan bourse on May 29 for secondary buyers, according to the Central Bank. The bond will be listed on Rwanda stock exchange (RSE), secondary trading in multiples of Rwf 100. 000.
Interest will be subject to withholding tax at the rate of 5% for EAC residents Taxpayers and 15% for non-EAC residents.
All investors are therefore required to complete bond application forms available on the National Bank of Rwanda Website.
Rwanda has been issuing bonds as part of a plan to develop its tiny capital market as well as fund infrastructure which wants to reduce its dependence on aid to finance its national budget. ($1 = 867.7680 Rwandan francs).