Rwanda Commercial Bank (BCR) has confirmed will list on the planned stock exchange market should it open for business next year.
BCR’s planned listing is part of the banks move to diversifying its source of revenue and raise funds to start long-term financing. Financial experts say long-term financing is vital in an economy to trigger economic development, but in Rwanda it is lacking.
The intention of BCR to list comes at a time the bank announced it would pioneer the mortgages project, meant to assist several Rwandans own homes and become property owners. And, BCR management plans to raise the funds to finance this multibillion project through bonds.
“Certainly there is a plan in future (to list). I think listing will be considered. The DFCU in Uganda is majority owned by Actis and a significant part of it is on the stock exchange. So once the stock exchange in Rwanda is in place, it is one of the things that the directors will consider,” David Kuwana, BCR’s managing director said.
If the bank lists, its shares could be converted into tradable items and the value certainly goes up.
“Our ability to raise money (through Stock Exhange) is there. And if I give you the shares it grows and your personal wealth grows, and that is my business,” Kuwana said in a recent interview.
He is also a member of the capital markets advisory committee, a group of experts that has prepared Rwandans for the first stock exchange. This stock exchange is set to be operational in the first quarter of next year.
Rwanda Housing Bank’s has also expressed interest in listing.
But when contacted, Charles Haba, the Housing Bank marketing manager said it was still too early to commit themselves whether they would list of not.
But hastened to say, “We would want to list.” Government is majority shareholder in the Housing Bank and is (government) not interested in doing business.
“Listing is one of the ways government would shade off the shares,” Haba said when contacted on phone.
Media reports quote Robert Mathu, executive director of the Rwanda Stock Exchange as saying, “The market should be up and running before end of next year’s first quarter.”
“We are so far finalising on the rules and regulations of the stock market which should be done with before close of this year,” he is quoted by Reuters.
The stock market would list both shares and long-term financing bonds. The Kigali bourse will target manufacturing, mining, tourism and real estate companies, he said.