The process to float the planned International Finance Corporation (IFC) bond on the Rwanda stock exchange (RSE) has been launched which will raise money for investments in Rwanda.
Brokerage firms began accepting application today Monday and the process closes on Thursday May 15. “This is an opportunity to diversify your investment portfolio for better returns,” said Shehzad Noordally, CEO of CDH Capital Ltd in an email statement to investors today.
“The IFC 5 year Bond will pay interest rate of 11.675% – 12.5% per annum, twice a year. These bonds are risk free.”
Noordally said potential investors need a minimun of Rwf 100,000 ($150) to register for participation. However, the rate will be determined by market forces; the lowest denomination investors will be allowed to buy will be $74,000, according to The East African, a regional weekly.
Standard Bank/CfC Stanbic Bank Ltd and Bank of Kigali are arranging the floating of the bond on the RSE, which is expected fetch some Rwf15billion ($22million).
The bond will be available to domestic and international fixed income investors, opening up the international private bond listing on the Rwanda Stock Exchange (RSE).
The RSE has only one eight-year corporate bond worth Rwf10 billion ($14.4 million), issued in 2010, by I&M Bank (previously Commercial Bank of Rwanda).