Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Rwanda raises $400m in bond debut

26 April 2013, 10:21 AFP

Kigali - Rwanda, faced with a cut in international aid for the past several months, on Thursday became the first country in east Africa to turn to international markets to raise funds by launching a $400m 10-year bond.

Investors, attracted by the country's buoyant economic growth, bid more than $3bn, which was issued with a yield of 6.875%, market sources said.

"It was preceded by an expensive roadshow in Hong Kong, Singapore, London, Munich, Frankfurt, Boston, where it was very well received," said Nick Darrant, emerging market manager at BNP Paribas, which handled the issue along with Citigroup.

The issue will enable Rwanda to repay government loans, complete a conference centre in the capital and finance a hydro-electric power project.

"It wasn't as oversubscribed as Zambia in September last year, but still shows a healthy appetite for Sub-Saharan African sovereign debt," said Mark Bohlund, an economist who follows Sub-Saharan Africa at IHS Global Insight.

"It should therefore indicate strong demand for other Sub-Saharan African sovereigns issuing debt, both Angola, Ghana and Nigeria (which have issued debt before) and debutants like Kenya and Tanzania," he told AFP.

Turning to global financial markets will allow Rwanda, whose population is largely rural and who last year posted per capita income of just $664, to diversify its sources of funding and to "narrow the funding gap for its infrastructure investments", Bohlund said.

Rwanda, whose infrastructure, economy and social fabric were destroyed less than two decades ago by the genocide of 1994, posted 8% economic growth last year, despite cuts in international aid, and could post 7.5% growth this year, according to a forecast by the International Monetary Fund.

Tags rwanda

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Shakila Alivitsa
4 ways to handle your cheating ma...

He is cheating. How do you handle him?

Submitted by
Shakila Alivitsa
Why do men choose second wives?

Why do men choose to have second wives?

Submitted by
Eugene Odanga
Wizkid set for twin Kenyan shows

Wizkid is back in Kenya. For two shows.

Submitted by
Eugene Odanga
Udada women's festival begins in ...

The Udada women's festival has arrived in Nairobi.

Submitted by
Uhuru pardons 2747 death row conv...

President Uhuru Kenyatta has pardoned a number of death row convicts, sending them to life sentences instead. Read more...

Submitted by
Eugene Odanga
WATCH: Kaka Sungura arrested in t...

Was Kaka Sungura arrested in town?