Rwanda is set to raise Rwf10 billion through a new 10-year treasury bond (TB), with proceeds expected to be directed towards infrastructure development and deepening the country’s nascent capital markets. A prospectus issued by the National Bank of Rwanda (BNR) on Tuesday, April 22, noted that the fixed coupon bond, designated FXD 9/2025/10YRS, will be issued on April 23, 2025, and is expected to mature on April 13, 2035. ALSO READ: Rwanda records 32% rise in investment in 2024 According to the prospectus, the interest rate will be determined at the close of a book-building process on Wednesday at 4:00 PM Kigali time, while semi-annual interest payments will commence on October 24, 2025. ALSO READ: Why Fitch maintained Rwanda's B+ in latest rating “Book building” is a process through which potential investors determine the bond’s demand and price through public bidding. According to BNR, the bond is open to both resident and non-resident investors with a Central Securities Depository (CSD) account, and the minimum investment is Rwf50 million for competitive bids and Rwf100,000 for non-competitive bids. Bids will be accepted from April 21 through April 23, with results expected by 5:00 PM on issuance day. BNR said that the settlement is scheduled for April 25. “The allotment process will cater to both retail and institutional investors, following EAC common market protocols,” reads part of the prospectus. The TB sale is under the government’s quarterly issuance programme that started in 2014 to raise money to fund infrastructure projects. ALSO READ: Rwanda leads region in World Bank Business-Ready survey The latest issuance comes at a time when Rwanda, through its National Strategy for Transformation (NST2), seeks to prioritise sustainable development while strengthening public participation. According to the Ministry of Finance and Economic Planning, the country’s public debt rose to 68.4 per cent of GDP by the end of 2024, up from 65.7 per cent in the previous year. The increase, officials said, is attributed to continued spending on infrastructure, social services, and rising security expenditures. Despite the growing debt burden, however, Fitch Ratings in November 2024 maintained Rwanda’s long-term foreign-currency issuer default rating at ‘B+’ with a stable outlook, citing strong governance and sound macroeconomic management. Rwanda’s economy expanded by 7.6 per cent in 2024, buoyed largely by growth in services, agriculture, and construction. However, experts said that the macroeconomic outlook remains fragile, with inflationary pressures, currency depreciation, and elevated import costs all posing risks. Previous bond issuances, including the FXD 6/2021/7YRS and FXD 4/2020/15YRS bonds, were oversubscribed. Official data from the Rwanda Stock Exchange (RSE) indicated that in 2023, the government issued six treasury bonds, reopened seven bonds, and a sustainability-linked bond with a total face value of Rwf308 billion compared to Rwf363 billion issued during the same period in 2022. In 2024, there were 41 outstanding bonds, including issuance and listing of three products from private issuers in the last quarter of the year, which raised Rwf51 billion in total.
