The government, through the Central Bank, has issued 2020’s first Treasury bond, a seven-year Rwf15 billion. Like previous bonds, the National Bank of Rwanda says the bond has been issued for purposes of capital market development. Bids for the new T-Bond will be received beginning January 22. Institutional investors (pension funds and insurance companies) with accounts at the Central Bank can deposit their bond application forms directly to BNR, while retail investors can approach investment intermediaries. The bond will be listed on the Rwanda Stock Exchange (RSE) and trading on the secondary market will commence on January 24. The prospectus indicates that once the trading activities for the Government debt securities have begun, investors’ interest will be subject to withholding tax at the rate of 5 per cent. Investor interest will be paid semi-annually between May 2020 and November 2026 Appetite of individual investors in the bond market has been increasing over the years with the Government indicating that their participation has increased over the years. Currently, there are over 20 outstanding bonds trading on the secondary market.
