20 August 2014

Rwanda: Government Targets Individual Investors, SMEs in Latest Treasury Bond Issue

The Government is looking to small and medium-sized investors both within the country and in East African Community to raise Rwf15 billion in a treasury bond issue next Wednesday.

This is according to the finance minister, Amb Claver Gatete.

Speaking during a press briefing at the Ministry of Finance and Economic this afternoon, Gatete said individuals and SMEs ought to take advantage of the additional investment opportunities the government has availed them.

"This bond is risk-free since it's guaranteed by government. It is very liquid since bonds can be sold anytime at the Rwanda Stock Exchange thus ensuring a good return on investment. It can also be pledged as collateral for any loan," the minister emphasised.

He added that interest payments on the latest bond is likely to be higher or at around the same rate as the previous Rwf 12.5 billion bond issued in February, which attracted a rate of 11.5 per cent. This rate is higher than the deposit rates of most of the commercial banks in Rwanda.

More details in tomorrow's The New Times...

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