Institutional investors dominate 5th bond issue

The National Bank of Rwanda yesterday, issued a Rwf10 billion fixed coupon Treasury bond (TB) under its quarterly issuance programme, which saw institutional investors taking the lion’s share.

The National Bank of Rwanda yesterday, issued a Rwf10 billion fixed coupon Treasury bond (TB) under its quarterly issuance programme, which saw institutional investors taking the lion’s share.

The ten-year bond is the second bond issued this year; and fifth in total since last year.

The issuance attracted a subscription level of 228.19 per cent, with the number of retailers increasing from 22 during the February treasury bond issue to 32, John Rwangombwa, the Governor of the central bank, said.

Of the 55 applications received at BNR, retailers and individual investors account for 2.4 per cent, banks 20.9 per cent and institutional investors 76.7 per cent. Overall, foreign participation accounts for 30 per cent.

The central bank received 62 applications for its February issuance that was largely dominated by banks and institutional investors, with high participation from co-operatives.

The treasury bond’s final price was announced at a yield of 13 per cent, with an annual coupon rate of 12.925 per cent paid semi-annually. Rwangombwa said the central bank employed the book-building method to determine the price of the bond that opened on Monday, May 25, and closed on Wednesday, May 27.

“In a bid to stimulate the activities at the Rwanda Stock Exchange and promote the development of the capital market, the bond has been issued at a discount price of Rwf99.574 to give incentives those investors who will be willing to trade their bond on secondary market from Tuesday, June 2,” Rwangombwa noted.

editorial@newtimes.co.rw

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