{The government of Rwanda through the National Bank of Rwanda (BNR) has issued 15 year fixed coupon Treasury bond worth Rwf 10 billion as part of regular issuance plan to develop infrastructure projects and its capital market. This is the longest tenure bond issued ever since the government of Rwanda started issuing Treasury Bonds in 2008 and its oversubscription of 215.5 % shows good appetite for government’s bonds.}
BNR employed a book building method to determine the price of the bond. The book was opened on Monday May 23rd , 2016 and closed on Wednesday May 26th ,2016.The bond was issued at par with both final coupon rate and yield at 13.5%.The bond will be listed to Rwanda Stock Exchange on Tuesday May 31 ,2016.
This bond attracted more retail investor. Out of 57 applications received at BNR, retailers accounted for 48 orders representing 15.61% of the total amount offered , from 9.77 % in February 2016.Institutional investors and banks were allocated 50,39% and 35.00% respectively.
Consistent awareness campaigns across the country and other information channels that were put in place were successful and led to positive results .There have been an increased number of retail and institutional investors and an oversubscription at every issuance. These results witness the confidence that investors have in the government of Rwanda in its capacity of debts reimbursement, transparent and coherent debt management policies.
The government bond issuance calendar for next financial year 2016-2017 will be published in July 2016
Leave a Reply