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IFC’s “Umuganda” Bond Marks First International Issuance in Rwanda’s Capital Markets

Washington, D.C., May 16, 2014— IFC, a member of the World Bank Group, today issued its first bond denominated in Rwandan francs, raising 15 billion francs (about $22 million) to expand the availability of long-term local-currency finance for local businesses while strengthening the country’s domestic capital markets.
The five-year bond, dubbed “Umuganda,” marks the first placement by a nonresident issuer in Rwanda’s domestic capital markets. It is also IFC’s first issuance in East Africa under the IFC Pan-African Domestic Medium Term Note Programme, which was launched in May 2012 to support capital market development in the region. “Umuganda” is the local expression for coming together to achieve a shared objective.
"Rwanda's capital markets can play an essential role in boosting the country's development," said Claver Gatete, the country’s Minister of Finance and Economic Planning. "The success of IFC's Umuganda bond demonstrates that Rwandan capital markets are ready to welcome investors in Africa and globally."
Jingdong Hua, IFC Vice President and Treasurer, said: "Rwanda is a country brimming with promise. The IFC Umuganda Bond will support the development of the country’s capital markets so they can intermediate savings and private sector investment, putting Rwanda firmly on the path to end extreme poverty and boost shared prosperity.”
In June 2012, IFC received approval for a local-currency bond program in Rwanda. Under the program, IFC can issue bonds of up to 200 billion Rwandan francs, or approximately $290 million. Standard Bank South Africa/CfC Stanbic Bank and Bank of Kigali Rwanda Ltd. are lead arrangers for the program. KCB Bank Limited is the fiscal agent for IFC on the issuance.
The Umuganda bond was designed to appeal to a broad range of domestic and international 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.
In Rwanda, IFC focuses on accelerating economic growth through private sector development, strengthening the investment climate, and improving agricultural production and income. IFC works to expand access to local-currency finance for micro, small and medium enterprises—the key drivers of job creation.
IFC issues local currency-denominated bonds in emerging market currencies as part of its regular program of raising funds for private sector development, and to support the development of domestic capital markets. In many cases IFC is the first, or among the first, nonresident issuers in a domestic market. IFC bonds are rated triple-A by Moody’s Investors Service and Standard & Poor’s.
About IFC
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
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