A delegation of senior Rwandan government officials — led by the Governor of
Details released by the BNR show that the bond will be available to domestic and regional retail and institutional investors, effectively opening up a stream of investors from the EAC.
As for foreign participation, only institutional investors and fund managers will be targeted due to the size of the issue, "which is small by international standards," said BNR.
"This is just the beginning and these quarterly issues will be targeting not only the East African market but international investors. It is the first time we are looking at the region and the international market to invest in our bond," said John Rwangombwa, the BNR governor.
The central bank said domestic preliminary market surveys indicated a huge appetite among local investors while regional investors expressed interest in participating in the local market following the success of the country's sovereign bond.
READ: Investors scramble for
"The government plans to embark on a Treasury bond programme to boost the capital market development and fund infrastructure projects," said Claver Gatete, the Minister of Finance and Economic Planning.
"The main reason is the newness of the market. When you start a new market, it takes time to develop products. But, given where we have reached now, we are going to have a continuous (bond issuance) programme going forward with the frequent issuance of Treasury bonds on a quarterly basis," said
Analysts said the bond should attract large numbers of investors depending on the interest rate,
The bond will close on
"Interest rates may be higher compared with the Kenyan market. This will attract many regional and foreign investors. Rwandan investors are likely to take the lead because it is an opening for them to trade," said
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The government shelved bond activities on the market in 2011 after issuing a total of Rwf31 billion since 2008. However, stockbrokers say that the appetite on the bond market is still low compared with the interest shown on the equity market.
READ: Govt in fresh plans to list
Additional reporting by
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