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Rwanda Raises Rwf15 Billion From 20 Year Treasury Bond

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Rwanda has successfully issued a 20-year fixed coupon Treasury Bond worth Rw15billion.

This is the longest tenure for a bond issued since 2008 when Rwanda started issuing Treasury Bonds.

The bond has been oversubscription by 141.3 % by 80 applicants, indicating the high demand for Rwanda’s bonds.

The book was opened on Monday August 19, 2019 at 8:00am and closed on Wednesday August 21. 2019 at 4:00pm.

The book-building method was used to price the bond and the final price was announced at a par yield of 13.250%.

In the final allotment, individuals and retailers were allocated 14.97% of the total issued amount and institutional investors 47.39% while banks were allocated 37.64%.

The bond will pay coupons semi-annually and will be listed on the Rwanda Stock Exchange on Tuesday August 27, 2019.

The successful issuance is attributed to favorable macroeconomic conditions and coordinated efforts in the public awareness campaigns across the country in a bid to sensitize Rwandans to invest in risk free government securities.

It also follows Standard & Poor’s (S&P) recent upgrade of Rwanda’s credit rating from a flat “B” to “B+”, thereby confirming the growing maturity of the Rwandan economy, and boosting investor confidence in the country.

Next issuance for this financial year will be a 5-year bond reopen on September 25, 2019.

The previous longest tenure bond was a 15 year fixed coupon Treasury bond worth Rwf 10 billion issued in 2016.

These bonds are meant to raise funds to pay for ongoing expenses as well as major capital projects.