Kigali City Council (KCC) has for the second time changed the offer of its municipal bond, saying that some corrections in the business plan had to be made, the city council’s Communications Director has said.

KCC management had planned to issue the bond in September last year but later changed the issuance time to April, 2009.

Bruno Rangira, KCC’s Director of Communication said on Wednesday, without mentioning the date that the offer has been slate for June 2009. "We sent the business plan to Dyer and Blair for correction,” he said.

Dyer & Blair Rwanda was contracted as the lead transaction advisor and it is expected to come up with a complete business plan. It is also charged with advising the city council on the pricing of the municipal bond.

The city council needs to raise Rwf40 billion to finance some of its projects in the Kigali Master Plan. These include development of a new central business district for Kigali City.

By issuing a municipal bond, it means that the city administration would be borrowing money from Rwandans to support development of projects. 

This also means that Kigali city administration will receives a cash payment at the time of issuance in exchange for a promise to repay the investors who provide the cash payment over time. According to authorities this is first municipal bond to be listed in the East African region.

KCC’s officials said that the money raised with an intended interest rate between 10 to 11 per cent over an intended coupon rate of 8 years will be used to increase the city’s investment capital for executing various obligations.

The master plan of 50 to 100 years, which city administrators received recently is expected to assist the city in creating a model of social, environmental, and economic sustainability.

Kigali’s new central business district is part of the projects that have been lined up for development.

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