Govt re-opens 20-year bond to raise Rwf15b

The National Bank of Rwanda head office in Kigali. / Sam Ngendahimana

The government is back on market seeking to raise Rwf15b through a 20-year Treasury bond to fund infrastructure projects, according to the central bank.

Bids for the bond, whose coupon will be determined by book building, will be received from August 21 (next week Wednesday) to August 23.


Book building involves a process of generating, capturing, and recording investor demand for shares.


In the process, applications are accepted largely from large buyers such as financial institutions, corporations with the price at which new shares are issued is determined after the book is closed.


Interest payments for the bonds will be paid out semi-annually beginning February next year to July 2039.

The Treasury bond sale is under the government’s quarterly issuance programme that started in 2014 to raise money to fund infrastructure projects. The programme also seeks to develop the local capital market.

Interest will be subject to withholding tax at the rate of 5 per cent for EAC residents and 15 per cent for non-EAC residents.

All investors are therefore required to complete bond application forms available on the National Bank of Rwanda website

In previous years, the Treasury bonds have been oversubscribed reflecting confidence in the local market.

Early this week, international financial services company, Standard & Poor’s upgraded Rwanda’s credit rating from a flat “B” to “B+” thereby boosting investor confidence in the country.

A sovereign credit rating is an independent assessment of a country’s creditworthiness. It is important because it gives investors insight into the level of risk associated with investing in the debt of a particular country, including any political risk.

According to the latest S&P global market intelligence insights, despite the planned fiscal expansion, the firm expects the government’s debt levels to remain moderate and debt-servicing costs relatively low.

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