The government is targeting to raise Frw5 billion from issuing a third Treasury bond. This Treasury bond will be offered by the National Bank of Rwanda (BNR) on the primary market this week.
Currently government has two Treasury bonds listed on the Rwanda Over The Counter (OTC) market—with maturity period of two years and interest rates of 8 per cent each.
But the new Treasury bond will carry interest rate of 8.25 percent and has maturity period of three years. It is expected to be on offer on the secondary market (OTC) on March 7.
Information from BNR shows that this bond is eligible for investment by residents and non residents with accounts in licensed commercial banks, intermediaries and BNR.
This has come a few days the minister of finance and economic planning James Musoni said that government will continue to support longer term maturity bonds to finance productive investment.
The minister also revealed that estimated Frw20 billion is to be traded from the private sector individuals.
Meanwhile Wednesday’s trading was quiet on the Rwanda OTC market as no transactions were recorded. At the close of business, Treasury bonds worth Frw50 million were on offer at the price of Frw101.00 but there were no buyers.