The National Bank of Rwanda (BNR) will today list another Treasury bond on the Rwanda Stock Exchange (RSE) with a target of increasing government’s income and also encourage the performance and growth of the stock market.
This is the ninth time the central bank is borrowing money on behalf of government from the local public through issuance of treasury bonds.
The Executive Director of The Capital Markets Authority (CMA), Robert Mathu, said that the move to increase the number of securities available on RSE will improve secondary market activities.
“The reason why there is a slow daily trading on bonds is because they are very few, but the number is now growing.
Once we have several of them, chances are likely that we shall have secondary market transactions that will help the country develop high income,” Mathu said in a phone interview.
Details of the bond, which is due to be listed today, regarding the coupon rate and the maturity period, are yet to be revealed by the central bank.
Launched in January 2008, the Rwandan bourse currently lists five treasury bonds and one corporate bond, which was issued by Rwanda Commercial Bank (BCR).
The nascent bourse also lists two domestic companies—Bralirwa and Bank of Kigali (BK).
It also boasts of two cross listings from Kenyan firms, KCB and Nation Media Group (NMG).