Rwanda's latest bond oversubscribed by 226 percent
The 5-year bond was launched on February 24th.Rwanda's latest bond issue, worth 15 billion Rwandan francs (€18.4 million), was oversubscribed by 226.12 per cent, the National Bank of Rwanda said.
The central bank said in a statement that out of the 88 applications received, retail investors made the largest contribution with 60 applications against 47 in November 2015.
The statement adds that the positive trend in bond subscription can partly be attributed to consistent awareness campaigns launched across the country since 2014.
The 5-year bond was launched on February 24th to finance local infrastructure projects and develop the local capital market.
The oversubscription reflects investors' confidence in the Rwandan economy. Robert Mathu, the Capital Markets Authority chief executive officer, told The New Times that "all the previous bond issues were oversubscribed, which means that there is a lot of appetite among the public to invest in government bonds."
The government issued a 15 billion Rwandan francs three-year bond in November last year, which was oversubscribed by 176.39 per cent. The next bond will be issued in May this year for a 15-year period.