Rwanda to issue €18.5mn bond
The government is looking to fund infrastructure development.Rwanda is to sell a three-year Treasury bond worth 15 billion Rwandan francs (€18.5 million) this month.
The country's central bank said on Tuesday (November 3rd) the bond will provide financing for infrastructure projects and boost capital market development, Reuters reports.
Rwanda is increasingly turning to the market to raise funds. In 2013, its debut bond on international markets was a resounding success, as investors oversubscribed the offer 7.5 times.
This announcement comes after the International Monetary Fund (IMF) downgraded Rwanda's 2016 economic growth prospects owing to external risks in the global economy.
Laure Redifer, a senior IMF official, pointed out that lower global commodity prices and weaker growth prospects in the country's main export markets already felt by the mining sector would affect the performance of Rwanda's exports in the near term substantially, Xinhua reports.
"This will put pressure on the balance of payments and the IMF expects economic growth in 2016 to moderate to between six and 6.5 per cent, lower than seven per cent previously projected," she said.