Gov’t issues 5th Treasury bond

The government through the Central Bank last week floated the 5th Treasury bond on the secondary market inviting the public to make long term investment. According Francois Kanimba, the Governor of the Central Bank, the latest bond is worth Rwf2.5 billion with a three year maturity period attracting a coupon rate of 9.75 percent. “The capital markets being a new phenomenon in Rwanda, it’s upon the government to ensure its development and increase the activities on the market,” said Kanimba. While launching the commencement of trading of the bond, Kanimba emphasized that the government is committed to the support and develop the secondary market which will give the opportunity to the local investors to make long term savings through the capital market. The government last issued a treasury bond in January this year when it raised Rwf2.5 billion from the three-year bond carrying an interest rate of 9.5 percent. However, for the first time on the primary market, the bond registered an under subscription of Rwf1.5 billion forcing the government to withdraw Rwf1 billion from the market. “The under subscription was due to the misinformation that was sent out to the two potential banks that were willing to invest into this instrument,” explained Kanimba. The Central Bank official assured the public that it is now safe to invest in the market with the liquidity crunch that the world suffered last year easing. Ends