An international finance magazine-Euromoney, has named Rwanda’s $400 million Eurobond the “2013 Deal of the Year”.
Last year Rwanda succeeded in getting its debut Eurobond of US$400 million as a way to accelerate economic growth.
The bond was issued on the Irish Stock Exchange with an issuance coupon rate at 6.625 percent with lead managers on the deal being BNP Paribas SA and Citigroup Inc, for a 10-years bond offering.
Under President Paul Kagame, Rwanda has seen economic transformation and the government has been boosting transport links and energy supplies and promoting regional trade to lift the Rwanda which is predominantly a tea- and coffee-growing nation into a middle- income economy by 2020.
Rwanda’s economy is expected to expand by 8 percent, as the country also plans on gripping the inflation rate, which was at an accelerating 7.5 percent by the end 2013.
Rwanda will use $200 million to repay loans on the Kigali Convention Centre multimillion construction project and a development plan for RwandAir the national carrier, while another $150 million will be spent completing the center and $50 million on a hydropower plant, according to the government’s prospectus papers.
Euromoney Editor Clive Horwood said that the timing of the deal could not have been better, and international appetite was equally impressive. The deal is another step in the continued rebuilding of Rwanda, whose forward-looking government has put the country on the right track.”
This year, the government is also planning to sell stakes in 13 state- owned companies focusing on agriculture, services, and transport, banking and insurance industries by the end of the fiscal year of 2014 to 2015, raising about 10 billion Rwandan francs ($15.7 million), according to the prospectus.
Rwanda is rated B with a stable outlook by both Standard & Poor’s and Fitch Ratings, five levels below investment grade at both ratings.
Rwanda was once again, in 2014 ranked best performer in making it easy to do business and was ranked in position 32 out of 189 countries in the latest World Bank data provided on Doing Business 2014.
Rwanda moved up 22 steps from its former position 54 in the previous assessment on Doing Business 2013.The 2014 ease of doing business report indicates that Kenya came in 129, Burundi in 140, and Tanzania 145, while Mauritius came in 20 and DR Congo 183 position.
During the state of the nation address in December 2013, President Paul Kagame said that statistics showed that the country had grown in the past year at a 6.6 percentage growth performing better than most African countries and globally; and Kagame asserted that this can even grow more in 2014.