Rwandans have been urged to continue investing and saving through government Treasury bonds to support the country’s development goals.
John Rwangombwa, the central bank governor, said it is essential for individuals and SACCOs to participate in the quarterly TB issuance programme as part of efforts to ensure Rwandans are self-reliant.
The governor was speaking after BNR released a bid notice for its five-year Rwf10 billion Treasury bond yesterday.
The bond will be the first TB for this year under the government’s quarterly bond issuance programme launched in 2014 to support the development of the stock and fund infrastructure projects.
The bond will be issued through the book-building method, and its redemption date is 18/02/2022.
“We continue to conduct road shows educating the public about the benefits of investing in Treasury bonds since this is a new investment vehicle for many Rwandans.
“Though there’s still a long way to go, we are confident our efforts will eventually pay off,” Rwangombwa said.
Meanwhile, the bids for the bond from February 22 to 24, and its coupon rate will be determined at the close of book-building on February 22.
It will be listed on the Rwanda Stock Exchange on February 28.
The TB issued in November 2016 got a subscription rate of 139.05 per cent, a marginal rise from 139 per cent recorded in the August issuance.
Institutional investors accounted for 72.8 per cent participation rate, while banks were allocated 24.3 per cent of the total orders and retail investors, who accounted for 42 orders of the 61 applications received by the National Bank of Rwanda (BNR), indicating a 2.9 per cent uptake level.
The bond issuance programme is also part of the country’s plan to reduce its dependence on aid to finance its national budget.Follow https://twitter.com/Julio_Bizimungu