{{The International Finance Corporation (IFC) listed its Frw 15 billion (US$22 million) Umuganda bond on the Rwanda stock exchange.}}
Issued in May 2014, the bond was oversubscribed 3.9 times with bids from local, regional and international investors, signaling confidence in the outlook of Rwanda economy.
The bond will facilitate access to finance for the private sector while strengthening Rwanda’s capital market.
Speaking at the bond listing launch, the Minister of Finance and Economic Planning Claver Gatete lauded the event as historical in attracting long term in attracting long term capital and strengthening the capital market.
“To grow we cannot rely on banks alone. We need to utilize the capital markets to get financing for long term undertakings,” Minister Gatete said.
He noted that government was committed to build a strong and vibrant capital market but called for establishment of more products for the market to truly take off.
IFC executive Vice President and Chief Executive Officer Jin-Yong Cai noted that Umuganda bond underscored the partnership between IFC, investors Ministry of Finance and Central Bank.
“Through this bond, we are sending a strong signal to investors and insurers that they are welcome in Rwanda, an economy full of promise,” Mr. Cai said.
Board chairman of the Rwanda Stock Exchange Dr. James Ndahiro reminded that long term projects require long term capital which can only be raised through capital markets. He called for more companies to list on the Rwanda Stock Exchange.
Rwanda Stock Exchange has so far Frw 170 billion and US$ 86 million transactions respectively. RSE all share index has equally moved up to 11.5%, a clear indication that the market is growing.
Leave a Reply