Gov’t issues treasury bond worth Rwf2.5 billion

The government through the National Bank of Rwanda (NBR) has issued a fourth treasury bond worth Rwf2.5 billion on the secondary market. The treasury bond that has been issued will attract a coupon rate of 9.5 percent and this is part of the government effort in encouraging the performance and growth of the stock market. “The issue of this bond is a sign of government commitment to the support and development of the secondary market,” said Claver Gatete, the Deputy Governor of the central bank The bond that was issued on the primary market last week will enable investors realize interest after maturity period of two years. Gatete also explained that this is a process that gives people the opportunity to make long term savings through investing in bonds and stock. The government has previously issued three treasury bonds (2008) whose performance was good and they raised Rwf14.3 billion. “The response from the public towards investing in the bonds has been positive this is evidenced by their participation in the previous bonds where all were bought,” said Gatete. The capital markets being a new concept to the country, the Capital markets Advisory Council (CMAC) has been involved in a national wide awareness program informing the public which products are available on the market and the benefits in investing there. With the two previous bonds soon expiring, the government decided to float another bond of two years in an effort to reactivate the market. It is noted that the banks and other financial institutions are participating on the market more than any other player because they understand the market very well. The Rwanda over the counter market currently lists three treasury bonds, one corporate bond and one cross listing by Kenya Commercial Bank (KCB). Ends

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Gov’t issues treasury bond worth Rwf2.5 billion