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Rwanda,United States : KIGALI: IFC listed its Frw 15b worth of UMUGANDA BOND at RSE

July 8, 2014

The International Finance Corporation (IFC), a member of the World Bank Group, has accomplished the listing of its Frw 15 billion (US$22 million) Umuganda bond on the Rwanda Stock Exchange last week.

The Rwandan Ministry of Finance and Economic Planning has made this revelation in a media statement.

The IFC released its Umuganda bond in May this year and it had witnessed 3.9 times oversubscription. The issue recorded bids from local, regional as well as global investors, clearly indicating the investors faith in the prospects of the national economy of Rwanda.

The bond will provide the private sector with access to finance, at the same time reinforce the Rwandan capital market.

The Rwandan Minister of Finance and Economic Planning Claver Gatete was present at the bond listing event and he had expressed his delight over this move, stating the occasion as historical and added that it will facilitate lure long term capital and reinforce the capital market of the nation.

Gatete revealed, To grow we cannot rely on banks alone. We need to utilize the capital markets to get financing for long term undertakings.

He has reiterated the government s pledge to build a robust and dynamic capital market.

Speaking at the bond listing occasion, the IFC Executive Vice President and Chief Executive Officer Jin-Yong Cai has stated that Umuganda bond has highlighted their partnership with investors, Ministry of Finance and the Central Bank.

Cai further stated, Through this bond, we are sending a strong signal to investors and insurers that they are welcome to Rwanda, an economy full of promise.

Dr. James Ndahiro, the Board Chairman of the Rwanda Stock Exchange (RSE), has reiterated that long term capital is essential for long term projects and capital markets are the only option to raise long term capital. He has also urged for further listing by new companies on the RSE.

To date the Rwandan stock market has Frw 170 billion and $ 86 million transactions respectively.

Considering an increase of as much as 11.5% for RSE all share index, it is clearly understandable that the market is moving towards growth.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

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