Capital market: Trading starts quietly, picks-up at end of week

A weekly trading report compiled by Rwanda Capital Market Authority indicates that this week’s trading on the Rwanda OTC market started off quietly as no transactions were recorded for the first three days. However, the market recorded some activity towards the end of the week. Bonds worth Frw200,000 were traded at the price of Frw101 in one transaction. At the close of business on Friday, Treasury bonds worth Frw89.6 million were on offer at the price of Frw101 but there were no buyers. A third Treasury bond with a longer maturity of three years was auctioned by the central bank on behalf of the government. The Treasury bond carrying an improved coupon rate of 8.25 per cent per annum was targeting to raise Frw5 billion and the bond will be listed on the Rwanda OTC market on March 7th. The bond is eligible for investment by residents and non residents with accounts in licensed commercial banks, intermediaries and central bank. Individual investors can also apply through commercial banks and members of the Rwanda OTC market. This bond will bring the number of active debt securities to four. There are already the two 2 year government Treasury bonds that will mature in 2010 with periodic interest of 8 per cent per annum. And the 10 year Rwanda Commercial Bank (BCR) bond that will mature in 2017 with periodic interest of 9 per cent per annum was transacted.Ends