Rwanda’s Rwf10B Bond Fully Subscribed

RSE CEO Celestin Rwakumba delivers a public lecture at Univ Of Kigali Musanze Campus on the role of the markets in sourcing development finance.

The latest 7-year treasury bond (T-bond FXD4/2017/7YRS) could see government having more money than it asked for on Rwf10 billion bond.

According to Robert Twagira, the Head of Information Technology and Operations at Rwanda Stock Exchange (RSE), the bond already has over 100% subscription.

“By the end of business today we shall have the right figures but so far the investors have had another great opportunity of making money” Twagira said.

This opportunity and easy cash means that an investor gets an interest with yield of 12.400% at the end of every year.

The bond was rolled out by Central Bank from November 20th to 22nd 2017. However, this bond grabbing opportunity was mainly subscribed by banks and insurance companies that had ready cash to invest.

While this is good for investors, other businessmen and women still have a chance to buy secondary bonds.

“There was less time but there’s always another chance to buy shares via Rwanda Stock Exchange as the bond will list on the November 28th,” RSE said.

Rwanda stock exchange has ten official stock brokers. While some of them didn’t participate in this year’s bond, others bought few shares to keep their clients on board.

Stephen Njoroge, the Operations Manager FAIDA Securities Rwanda told KT Press that most of their clients preferred to buy bonds directly from government.

“We incur costs in buying the bonds and these costs are not refunded by the central bank, so we decided to wait for the shares to reach the stock market so we can change a 0.25%, to stay in business,” Njoroge said.

On the other hand, African Alliance Rwanda Securities managed to grab at least Rwf3 million worth of shares on grounds that bonds would be profitable for the client to purchase them directly.

When an investor buys shares directly from government in itself has advantages such as: investment is risk free, one gets a fixed income on the coupon which is bigger than what banks offer, and at maturity of the bond one gets back the whole invested capital.




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