This week the the Rwanda Over The Counter (OTC) market gained momentum as bonds worth Frw150 million were traded. This makes it a total of Frw634 million traded in 43 transactions since the establishment of the capital market in Rwanda in January this year. Pierre Celestin Rwabukumba, Operations Manager Capital Markets Advisory Council (CMAC) attributes this to the public awareness that has been conducted by CMAC. “With time, people are realizing the value of investing in bonds. We expect more transactions as we continue with our sensitization,” Rwabukumba said. According to the weekly report from (CMAC), at the close of business on Friday, there were Frw2 billion worth of bonds on offer at Frw99.8 but there were no buyers. The report also indicates that Comercial Bank of Rwanda (BCR) bonds worth Frw150 m were on offer at Frw100.50. The two active debt securities on the OTC market so far are the two Treasury bonds which will mature in 2010 with periodic interest of 8 per cent per annum. Others are the three year treasury bond paying 8.25 per cent per annum and the BCR bond which matures in 20017 with periodic interest of 9 per cent which has so far recorded Frw150 m in three deals. In order to support the the development of the equities market, government has decided to sell its stake in a number of companies where it holds shares. Government has identified MTN Rwandacel, SONARWA, BCR, BRALIRWA and MAGERWA among others as, the initial companies it pans to list on the Rwandan bourse. It was expectated that the equity market would be activated by the listing of at least one company by the end of 2008. Sonarwa was set to list this year but the process was haulted by Industrial and General Insurance prchase into Rawnda’s largest insurance company. James Musoni, the Minister of Finance and Ecomic Planning recently said he does not expect Sonarwa Inital public Offerin (IPO) this year. Robert Mathu the Executive Director CMAC said that the shareholders must put their house togetehr. “ Management of these companies is waiting for shareholders ‘ approval”, Mathu said . Currently CMAC is focused on the development of an appropriate legal framework for the capital market in Rwanda and has appointed a consultant to draft the legal framework which is expected to be ready by December 2008. According to Mathu this will increase investor confidence. Ends
