The National Bank of Rwanda has launched another Frw5b Treasury Bond on Rwanda over-the counter capital market.
The new bond was unveiled yesterday at Rwanda Capital Markets Advisory Council (CMAC) head offices at Ecobank and its first trading on the secondary market.
It carries a coupon rate of 8 percent, is maturing in 2010, and it is said to have been under-subscribed— meaning it has not attracted many investors.
This is the second bond that the government has issued,in a period of one month in order to support the development of the capital market in the country.
Henry Gaperi, chairman of CMAC, said that these bonds will act as a benchmark for pricing other products on the market. He added that they (bonds) will also help in creating a yield curve.
Vice governor of Rwanda National Bank Consolata Rusagara said the government has made sure that measures are in place for the market to run smoothly.
She added that there is macro-economic stability and fiscal discipline, and exchange rates are kept low. She also said that inflation is kept low and that there is market integrity.