East African Business Week (Kampala)
Bosco Hitimana
15 July 2008
Kigali — Set on mobilising funds for land acquisition and make it ready for investors, Kigali City Council (KCC) seeks to issue a municipal bond in September this year.
The city seeks to spend the money in developing ready to sell plots with roads, electricity and water in key areas that have been identified by the new city plan.
The move is geared by the new unveiled 50 year conceptual master plan of the city that is anticipated to make Kigali better planned city in the region and an investment destination.
The plan contains renewable five-year detailed physical plans that will serve as benchmarks for the city planners depending on the infrastructure and type of activity to be set up.
The city authorities have contracted Dyer & Blair Securities Rwanda Limited, a subsidiary of Dyer & Blair Investment Bank based in Kenya, as their lead transaction advisor.
Signed in at the Kigali Serena Hotel, the deal authorises Dyer & Blair bank to undertake strategic direction and execution of the bond structuring, information memorandum preparation and regulatory process.
The bank will also advise KCC on the appropriate revenue collection, configuration, and operational structures to enhance the bond issuance programme.
Once the bond is issued, Dyer&Blair Securities Rwanda limited, a brokerage firm at Rwanda over the Counter (ROTC), will market, list and sell the bond.
According to the city mayor, Ms. Aisa Kirabo Kakyira, the lead transaction advisor will come up with a value figure of the bond.
However, the mayor said that the existing business plan tips Rwf5billion ($9millon) that would be spent on acquiring land and resettlement of the people shifted by the master plan.
The prospectus of the bond that will be developed by the transaction advisor will provide maturity period and the coupon interest rate of the bond.
Stakeholders including the governor of Rwanda Central Bank, Mr. François Kanimba, representative of the ministry of finance, the chairman of the Rwanda Capital Markets Advisory Council (CMAC), Mr. Henry Gaperi welcomed the move saying that it is an indication that the importance of newly established capital market has been well understood.
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