Small Companies Can Buy Bonds on Rwanda Stock Market

Small businesses in Can buy bonds on the Rwanda Stock Market

Any other small sized business with cash ready to invest will be able to buy secondary bonds which will be listed on the Rwanda Stock Exchange on November 28th.

These bonds can be bought from ten official stock brokers for the Rwanda Stock Exchange (RSE).

This follows an exercise of buying of the government 7-year treasury bonds worth Rwf10billion that closed yesterday with investor subscription taking shares over 178.14% – the Central Bank has said.

Each coin invested in the bonds means that at the end of every year, investors will walk away with an additional 12.40% interest per franc.

In the final allotment, individuals and retailers were given 10.1% of the total amount of bonds issued, institutional investors got the lion share at 64.4%, while banks were allotted 25.5% of the bonds.

These will get their bond coupon paid every half of the year.

“The successful issuance of bonds is attributed to awareness across the country in a bid to educate Rwandans on benefits of investing and saving through government risk free debt securities,” the said Central Bank Governor John Rwangombwa in a statement.

Stephen Njoroge, the Operations Manager FAIDA Securities Rwanda, a broker company said that this is where many individuals are expected to invest in small and big amounts.

“Our clients prefer secondary bonds because we buy on their behalf. It is cheaper with very minimal charges compared to the rest of the region,” Njoroge said.

In case anyone misses out this year’s offers, government is also planning to rolling out another 5-Year bond in February 2018.

Since 2008 government has tabled 23 treasury bonds ranging from two to seven years, worth over Rwf213.5millions (minus the Eurobonds) and collected Rwf211.7millions of which Rwf170millions remain unpaid.

In the meantime, the 21st annual Conference of African Securities Exchanges Association (ASEA) -the premier association of 27 securities exchanges in Africa, ended today in Cairo, Egypt under the theme ‘Africa – Mapping the Future’.

African financial experts called for integration as one way of increasing foreign flow into African Capital Markets as well as increasing liquidity in these Markets

The Africa development Bank Fund (AfDB-ASEA) report was also launched at the event where it was also announced that the World Bank’s green bonds for Africa had reached $12 billion.

The AfDB-ASEA report will contain a series reports focusing on local currencies bond issuance, small and medium enterprises (SMEs) and many more financial segments in Africa.