Global finance corporation to issue more local currency bonds

The International Finance Corporation (IFC) will continue assisting Rwanda to create new sources of capital through bond issuances and trading at the local bourse, Jean-Philippe Prosper, the IFC vice-president for global client services, has said. Prosper announced the corporation’s commitment after paying a courtesy call on President Paul Kagame at Village Urugwiro in Kigali yesterday. In May, last year, IFC sold its first Rwf15 billion ($22 million) Rwandan Franc bond. In February, the corporation also issued $5 million offshore Rwandan Franc bond on the Luxembourg Stock Exchange, marking the first Rwandan offshore bond. “As the need emerges, we may list more local currency-based bonds. When we listed the previous bonds, we were able to attract foreign investors like the institutional pension fund. This is a great indication that foreign investors are confident about the Rwandan economy and the financial market to invest in the Rwandan currency-based bond,” Prosper said. He said, in the future, companies should explore opportunities of issuing bonds on international money markets to raise money including in local currency to fund development projects. “We intend to continue bringing more instruments on the Rwandan market,” he said. Finance and Economic Planning minister Claver Gatete said the IFC portfolio in the country keeps increasing depending on the demand. “The Rwanda Franc bond issued by IFC gives confidence to investors on how the economy is being managed; we are a low-debt country and our micro-stability is clear,” Gatete said. IFC is rated ‘triple A’ and, according to Gatete, for IFC to put its weight behind Rwanda is proof of the confidence they have in the local economy. editorial@newtimes.co.rw

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Global finance corporation to issue more local currency bonds