The Government’s move to return to the money market last week with a Rwf15 billion Treasury bond seems to have paid off, following the oversubscription by 226.12 per cent. The 5-year bond is part of a regular issuance plan to finance local infrastructure projects and develop the local capital market. In issuing the bond, the Government employed book building process which opened on February 22 and closed on February 25 when the coupon (interest) rate was be determined standing at 12 per cent. The bond will be listed on the Rwanda Stock Exchange tomorrow. According to a statement from the National Bank of Rwanda (BNR), out of the 88 applications received, retailers made the largest composition with 60 applications up from 47 in November 2015. The statement says that the positive trend in the subscription of the bond can partly be attributed to consistent awareness campaigns across the country put in place beginning 2014. The bond has been oversubscribed at every issuance and seen a growth in number of retailers expressing interest. Experts say that the trend of oversubscription and participation is an indication of investors’ confidence and perception of the Rwandan economy. The next bond will be issued in May this year for a 15 year period. editorial@newtimes.co.rw
