Appetite for government paper was mixed among all investor segments for the Rwf10 billion seven-year Treasury bond issued on Wednesday, a statement from the National Bank of Rwanda (BNR) indicates.

According to the central bank, participation of retail and individual investors, dropped to 10.1 per cent, from 29 per cent registered for bond issued on August 23. Banks were allocated 25.5 per cent compared to 43 per cent in August, while institutional investors scooped 64.4 per cent, regaining their dominance in the market.

However, the issuance received one of the top subscription rates at 178.14 per cent or 66 applications from retail, banks and institutional investors, the statement signed by BNR chief, John Rwangombwa, shows. The August 23 issuance received one of the highest levels of participation since the TB issuance programme started in 2014 at 222.03 per cent.

Commenting on the results, Eric Bundugu, the acting Capital Market Authority chief, said the high subscription level indicates the continuing confidence in the stock market.

Olivier Mazimpaka, a shareholder in Champion Investment Corporation (CHIC), said the firm plans to invest in TBs in the long-term because of the stability in the economic and financial market. "There is confidence in the economy and the government continues to show investors that it will improve the business environment; that’s what is attracting institutional investors,” he noted.

The bond’s coupon rate is 12.40 per cent, and it will be paid semi-annually. The TB will be listed on the Rwanda Stock Exchange on Tuesday, November 28. Government has been issuing regular bonds since 2014 under its quarterly TB issuance programme to fund infrastructure projects and support development of the local capital market.