News Column

Rwanda : RWANDA to issue five year $21 million Treasury bond to finance infrastructure

August 25, 2014

On 27 August, Rwanda will be issuing a five-year $21.8 million Treasury bond for raising funds for investment into infrastructure projects and boost the local capital market. Still the coupon rate is not announced pending outcome from a market study.

Earlier on 25 April 2013, Rwanda's$400 million debut Eurobond, was issued on the Irish Stock Exchange, with an initial coupon rate of seven percent. From total 250 investors, the 10-year sovereign debt earned over $3.5 billion in subscriptions.

With an economic growth rate averaging eight percent over the past decade, Rwanda is considered to be a low-risk economy with minimal inflationary risks.

Shehzad Noordally, the Chief Executive Officer of CDH Capital Ltd, a local stockbroker, stated that the local bond is expected to boost wealth redistribution and address inequality.

Emmanuel Mugiraneza, Public Relations Officer at Capital Markets Authority (CMA) said, We need more bonds from the government, corporates, municipalities and bonds from other relevant institutions.

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

Source: TendersInfo (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters