The government will next week issue a Rwf15 billion five-year treasury bond, the second of its quarterly issuance programme, a statement from the
Proceeds from the bond will be used to finance the country's infrastructure projects and facilitate capital market development.
The government started its quarterly treasury bond issuance in February with Rwf12.5 billion that was oversubscribed by 140 per cent.
According to the central bank statement, the treasury bond coupon rate will be determined once the book building process is complete at
Its redemption date is
BNR, the primary issuer, is receiving bids for a minimum of Rwf100,000 for individual investors, while companies will enlist for competitive bids of up to Rwf50 million.
The statement indicates that residents and non-residents with a central securities depository account at the central bank (opened through licensed commercial banks or capital market intermediaries) are eligible to bid for the bond.
Successful bidders will know their results through email on Wednesday and interest payments will be twice a year.
Condition for interest:
The interest will be subject to a withholding tax of 5 per cent for
Shehzad Noordally, the chief executive of
Noordally said with time, bond trading will be very active in
"The more bonds we have in the market, the more customers will come to bargain and buy it," he said.
Once the allotment process is complete, the bond will be approved to trade in the secondary market, the
It will be the fifth government bond at the bourse in the recent past, following two other corporate bonds of
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