Rwanda, IFC planning bond on London Stock Exchange

Minister Gatete presented his Rwf1, 768.2 billion Rwf 2015/16 budget in parliament last week and said government is putting more focus infrastructure.

Roads network will consume Rwf128.3 billion, while access to clean water in the capital Kigali and other areas of the country will consume Rwf34.2 billion.

The International Finance Cooperation (IFC) and Rwanda will issue a regional infrastructure bond on the London Stock Exchange (LSE), KT Press has learnt.

Finance Minister,Claver Gatete has confirmed the issuance of the bond, but declined giving details. “We have not reached the stage of announcing details about it,” he said.

Jean-Philippe Prosper, IFC Vice President Global Client Services, told KT Press that the bond would be issued at the LSE with the intention to mobilise funds to finance regional infrastructure projects.

The bond is also expected to attract investors into Rwanda’s financial products.

“The bond will show investors that Rwanda is worth trusting,” Prosper said, shortly after meeting President Paul Kagame June 10, to discuss IFC projects in Rwanda.

However, Prosper that what is important abound the bond issuance is to attract investors, and the value come second.

Minister Gatete said IFC has played a role in capacity building and developing Rwanda’s Capital Market, a reason he is positive the regional bond deal will be successful.

Regional infrastructure projects that could get funding from the bond include EAC’s prioritized projects such as the railway worth $1.425 billion connecting Tanzania, Rwanda, Uganda and Burundi and the energy sector worth $ 428.2 million.

Meanwhile, last year, IFC issued a US$22m bond on the Rwanda Stock Exchange, which was over subscribed by 400%.