The National Bank of Rwanda (BNR) will issue the fifth Treasury bond (TB) later this month, it has emerged.

The 10-year Rwf10 billion bond issue, under the government’s quarterly issuance programme, is scheduled for May 27, officials have said.

The proceeds from the bond issuance will be used to finance infrastructure projects and capital markets development, as was the case for four TBs issued by the government last year, the bond’s prospectus published by BNR indicates.

According to the prospectus, settlement will be done on May 29, and interest payments will be done twice a year. The TB will be listed on the Rwanda Stock Exchange (RSE) secondary market in multiples of Rwf100, 000 on June 2.

The upcoming bond will have the longest tenure compared to the last issuances, signifying a longer yield curve for the pricing of debt in Rwanda, according to financial experts.

Last year, the government issued a Rwf12.5 billion three-year bond in February, then a five-year Rwf15 billion bond in August and a seven-year Rwf15 billion in November, while in February this year it issued a three-year Rwf15 billion bond.