The government of Rwanda is to issue a Rwf 15 billion three year bond, the Central Bank has announced on Tuesday.
The bond expected to be issued on November 25 will be listed on Rwanda stock Exchange and issued through a book building method. The bank will start receiving bids between November 23 and 25, 2015.
Whilst, the bond’s secondary that will be traded in multiples of Rwf100, 000 will commence on Tuesday December 1 on Rwanda stock Exchange.
John Rwangombwa, central bank’s governor says the bond will be issued in a bid to support infrastructure projects as well as capital market development.
On a quarterly basis, the government issued a Rwf2.5 billion three-year bond in February and followed by a successful Rwf10 billion ten year bond before issuing another Rwf15 billion 5 year treasury bond.
The government ‘s bond issuance calendar indicates that it plans to issue five year bond on February 2016 and a 15 year bond on May 9 2016, all with unspecified amount.
The central bank says that the bond interests will be subjected to a withholding tax at the rate of 5 percent for east African resident tax payers and 15 percent non east African residents.