The Government of Rwanda today launched a 3-year treasury bond worth $18.3 million (Rwf 12.5 billion) targeting local and regional investors. The bond aims at boosting the capital markets.
According to a statement from the Ministry of Finance, the bond is risk-free, liquid, can be used as collateral and has a good return. There is also a tax incentive attached to the bond, with a withholding tax on interest reduced from 15% to 5% for the East African Community.
The ministry announced that regional investors expressed interest to participate in the local market following the success of Rwanda's sovereign bond last year.
For local individuals and institutional investors, the ministry says that they are encouraged to invest in the treasury bond as well.