Rwanda’s $400 million Eurobond issued last year was recognised as the “Deal of the Year” by international finance magazine, Euromoney, which cited its timeliness and the attraction it created on the global capital market.
The UK-based monthly magazine covers global banking, capital markets and publishes annual awards of excellence.
“The deal is a step towards the continued rebuilding of Rwanda, whose good leadership has put the country on the right track.” Clive Horwood, Editor of Euromoney, said.
Rwanda’s inaugural 10-year Eurobond was issued on the Irish Stock Exchange on April 25, 2013 with an interest rate of 6.625 per cent.
Although government was seeking for $400 million, it was offered $3.5 billion, eight times higher than what was expected, which indicated the high level of confidence international investors have in Rwanda.
According to the Ministry of Finance, proceeds from the Eurobond were injected in large-scale projects including Kigali-based convention centre with a five-star hotel, clearing RwandAir’s debt and fast tracking the construction of the Nyabarongo Hydropower plant.
The completion of a five-star hotel at the dome-shaped centre, as well as the 28mw to be generated from the Nyabarongo plant will both be achieved by May this year, according to Claver Gatete, the Minister of Finance.
“Our plan was to raise money to support long term projects. The reaction from the market was very positive with the Bond oversubscribed and represented a vote of confidence from international investors in Rwanda’s economy and how it is managed,” Gatete said.
The Eurobond received positive reviews at the time of issuance, with The Financial Times reporting that although it was less than the required minimum benchmark of $500 million, investors were undeterred and indicated huge interest due to Rwanda’s steady economic growth.
Fitch Ratings, one of the most respected rating agencies in the world, this year rated Rwanda’s long-term foreign and local currency Issuer Default Rating (IDR) at ‘B’, underlining the country’s credit worthiness and debt repayment ability.