The Central Bank has issued a five year Treasury bond worth Rwf3.5 billion, the seventh bond to be issued this year, signaling government commitment to the development of the secondary market.
The bond which was issued on Friday, last week, is part of the wider program to issue government securities regularly in order to revitalize the capital market operations.
Officiating the listing, Francois Kanimba, Central Bank the Governor, said that the bond has generated enthusiasm among investors on the primary market.
“This is very encouraging for all stakeholders in the financial markets development process and indicates that the economic environment is favorable for long term investment,” kanimba said.
The Governor said the Central Bank will continue to collaborate and support Capital Market Advisory Council (CMAC) in a bid to make the economy self reliant and contribute towards the national goal of becoming an active financial market.
While the Central Bank is working on establishing an Electronic Central Depository, the Governor noted that the legal framework is now in place to support the development of the Capital Market.
The Electronic Central Depository will provide safe custody and facilitate transfer of securities when trading transactions take place.
The Central Bank says it has decided to extend the maturity of the treasury bonds which were part of treasury bills to facilitate CMAC to diversify the instruments and encourage people to invest in these instruments as well.
Currently domestic government debt through Treasury bills and Treasury Bonds for treasury management, amounts to Rwf49 billion with Rwf35b in Treasury Bills and Rwf14 billion as Treasury Bonds.