Rwanda's first bond oversubscribed 7.5 times
Rwanda's debut bond on international markets was a resounding success, as investors oversubscribed the offer 7.5 times.Rwanda's debut bond on international markets was a resounding success, as investors oversubscribed the offer 7.5 times.
Issued on April 25th for a total of $400 million (€307.5 million), payable over ten years at an interest rate of 6.875 percent, the loan has far exceeded the government's expectations, generating more than $3 billion.
According to the Ministry of Finance, it is a “great result” that indicates Rwanda’s economic maturity and its attractiveness to investors on the international bond market.
Rwanda has had an average growth rate of 8.2
between 2006 and 2012 and Fitch Ratings has upgraded the country's rating in 2010 from
B- to B
with a stable outlook.
The funds raised by the bond issue will enable Rwanda to refinance its debt and fund several infrastructure projects.