Rwanda issues Rwf15 Billion bond
According to the Minister of Finance and Economic Planning, Claver Gatete, the government of the Republic of Rwanda has revealed plans to issue a Treasury bond of 15 billion Francs, that is equivalent to US$21.000.000.00, aiming at extending support to Capital market, ensuring that the every one interested in their savings get the chance with different options.
Claver Gatete added that the 15 billion Rwanda Francs bond was granted tax incentive as withholding tax on interest has been reduced by from 15% to 5% for East African Community resident tax payers who wish to invest in three 3 and above.
Early this year in February (2014), Rwanda government began its quarterly bond issuance issuing one worth 12.5 billion Rwanda Francs that was oversubscribed by 140%. Investors from Rwanda and other East African countries and beyond East Africa can easily access the new Treasury bond, its open to any one as a strategy to lure money from outside from foreign investors. The Treasury bond provides a great investment opportunity to investors and risk free after being guaranteed by the government
Funds collected by government from the bond will be injected into the public through social infrastructures development. The government came up with this idea as a strategy to boost the private sector that will help Rwanda achieve its target of development.
Rwanda Central Bank is to play a major role of technical work of the first issuance, ensuring that the government gets investors in the Bond. To achieve this, the central bank of Rwanda has already visited 20 districts sensitizing the public about the new Treasury bond. Many people are expected to invest and thus participate in the development of the country. Says Rwangombwa, the Governor of The central bank of Rwanda.
Rwangombwa, Rwanda Central Bank governor added that they have many outlets and other commercial banks / brokers throughout Rwanda that will receive the different investors wishing to invest in the new bond.
The Minister Gatete added that the bond will issues at 5 year maturity rate and this will attract investors from abroad, thus reducing on the risk of decline investor interest in specific maturities.
