{The Government of Rwanda through the National Bank of Rwanda (BNR) has successfully issued a 10 year treasury bond worth 10 billion Rwandan Francs, the 2nd issuance this year, following its commitment for a regular quarterly issuance since last year. }
The issuance was a success with a subscription level of 228.19% and the number of retailers increasing from 22 in February 2015 to 32 in May, 2015.
BNR has once again employed book-building method to determine the price of the bond. The book was opened on Monday May 25, 2015 and closed on Wednesday May 27, 2015 where the final price was announced at a yield of 13.0% with an annual coupon rate of 12.925% paid semi-annually.
This bond attracted both foreigners and domestic investors. From 55 applications received at BNR, retailers and individual investors account for 2.4%, banks 20.9% and institutional investors 76.7% of the total amount offered. Overall, foreign participation accounts for 30% of the issued amount.
In a bid to stimulate the activities at the Rwanda Stock Exchange and promote the development of capital market, the bond has been issued at a discount price of 99.574 to give incentives for those investors who will be willing to trade their bond on secondary market from Tuesday June 2, 2015.
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