Kigali, July 2, 2014
--IFC Executive Vice President and CEO Jin-Yong Cai today rang the opening bell on the Rwanda Stock Exchange to commemorate the Corporation's first bond denominated in Rwandan francs.
Issued in May 2014, the bond raised 15 billion Rwandan francs (about $22 million) from local and international investors, signaling confidence in the outlook for Rwanda’s currency and economy. IFC is a member of the World Bank Group.
The bond, dubbed “Umuganda,” will expand access to finance for local businesses, while strengthening the country’s domestic capital markets. “Umuganda” is the local expression for coming together to achieve a shared objective. The bond also marks the first placement by a nonresident issuer in Rwanda’s domestic capital markets.
“The Umuganda bond underscores the partnership between IFC, investors, the Ministry of Finance, the Central Bank, Capital Markets Authority of Rwanda” Cai said at the market-opening ceremony. “Through this bond, we are sending a strong signal to investors and issuers that they are welcome in Rwanda, an economy full of promise”.
The Umuganda bond appealed to a broad range of investors looking to diversify their portfolios. The order book was 2.19 times oversubscribed. Orders were received from Rwandan pension funds, international and domestic asset managers, insurance companies, and banks. The bond was issued at par and priced with a yield of 12.25 percent per annum.
Beyond financial markets, IFC supports Rwanda’s private sector by working with the government on investment climate reform and in key sectors, such as infrastructure, manufacturing and agriculture. Rwanda’s government has implemented reforms in areas, such as protecting investors, paying taxes, getting construction permits and resolving insolvency. Rwanda ranked second in sub Saharan Africa in terms of investment climate in IFC and the World Bank’s ‘Doing Business’ 2014 report. To date, IFC has invested $112 million in Rwanda.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit