{{The successful issuance of Rwanda\u2019s first international bond is a sign that the country is on the path to economic maturity, Rwanda\u2019s Minister of Finance said.}}<\/p>\n
The US$400 million bond, which is due May 2023, carries a coupon of 6.625 per cent. <\/p>\n
The oversubscribed order book developed momentum over the course of Wednesday and closed at over US$3.5 billion with 250 investors participating.<\/p>\n
Rwanda\u2019s Minister of Finance, Claver Gatete said, \u201cHaving laid the foundations for prosperity, Rwanda took a bold step on the path to economic maturity while adhering to our belief in prudent macro-economic policies.<\/p>\n
\u201cThe bond, which was oversubscribed, signals that international investors have confidence in African beyond the usual commodity growth story.<\/p>\n
\u201cRwanda\u2019s intentions are to invest in infrastructure as part of building a modern, dynamic, service-based economy that is connected to international markets and that allows for rapid development.\u201d<\/p>\n
The bonds were distributed to investors globally, including in the US, Europe and Asia after Rwandan officials met key emerging market fixed income investors in Boston, Frankfurt, Hong Kong, London, Los Angeles, Munich, New York and Singapore. <\/p>\n
The bonds are rated B by Standard & Poors and B by Fitch.<\/p>\n
A significant part of bond proceeds will be used to finish the construction of Kigali Convention Centre.<\/p>\n
It will also help finance the 28 megawatt Nyabarongo hydro power project, which will allow Rwanda to switch off diesel generators currently in use and reduce the country\u2019s import bill.<\/p>\n
The issuance of the bond reflects Rwanda\u2019s push to become less dependent on international aid. <\/p>\n
Having grown consistently at an average of 8.2 % over the past five years, the government\u2019s ambition is to become a middle-income country by 2020.<\/p>\n
To achieve this, the government this year announced the Economic Development and Poverty Reduction Strategy II. <\/p>\n
The objectives of this strategy are that, by 2018, economic growth will have averaged 8.3 % to 11.5 % per annum and export growth 28 %.<\/p>\n","protected":false},"excerpt":{"rendered":"
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