The Government of
While announcing the bond, the Minister of Finance and Economic Planning told journalists that currently the capital market in
"The Government of
The bond target market is domestic, regional and international investors, gradually in that order. On the local stage the bond targets banks, investment groups, Umurenge SACCOs, Micro-Finance Institutions, Cooperative Banks, Insurance companies, Pension Funds among others.
Minister Gatete added that: "domestic preliminary market surveys indicated a huge appetite from local investors while regional investors have expressed interest to participate in the local market following the success of the Rwanda Sovereign Bond and the need for diversification".
The main driver for regional investment is the spread between the local interest rate and the ones for the issuer country, the stability of the local currency and the level of inflation, and the status of the financial markets infrastructure as well.
As for foreign participation, only regional institutional investors and fund managers will be targeted due to the size of the issue, which is very small, by international standards. However, there will be no restriction to participation by investors outside EAC region.
The Treasury Bonds issued between 2008 and 2011 were amounting to Frw 31 billion. A big part of it has been paid back, only a stock FRW 8.5 billion is not yet retired. In the past, the subscription level was at 197% in average and the price ranged between 8% and 11.5%.
Most Popular Stories
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Chinese May Have Spotted Malaysia Airlines Debris
- Social Media Causee Sleep Deprivation in Students
- First-time Jobless Claims Drop Unexpectedly
- Banks Buying Little From Minority Firms: Study
- General Electric Plans IPO of Credit Card Unit
- 'Candy Crush' Maker Files IPO
- First-time U.S. Jobless Claims Hit 3-month Low
- SXSW Crash Kills 2, Injures 23
- U.S. Business Inventories Up, Retail Sales Down