Rwandan government beats target with treasury bond

Aug 25, 2010

A new bond issued by the Rwandan government has raised more than three times the targeted amount.

The New Times reports the administration issued the treasury bond on the primary market through the National Bank of Rwanda, aiming to bring in 2.5 billion Rwandan francs (€3.38 million).

However, the bond, which was made available last week, has been over-subscribed, generating a total of 7.6 billion Rwandan francs.

Francois Kanimba, Governor of the country's central bank - which last month opted to keep its Policy Interest Rate unchanged at seven per cent for the third quarter of 2010 - was quoted by the news source as saying the move was "very successful".

"These are general bonds that the government issues periodically especially after the previous bonds maturing, which are good for the Rwandan market," he remarked.

The bond, which will mature after two years, has a coupon rate of 9.5 per cent.