On Monday 20th January, Governor of the Central Bank of Rwanda Hon. John Rwangombwa led the closing of the market ceremony at the London Stock Exchange alongside Jingdong Hua, Vice President and Treasurer of the World Bank and Nick Dyer, Director General for Economic Development and International at the Department for International Development.
The ceremony was to celebrate the World Bank launching its first bond denominated in Rwandan Franc (RWF). The sole lead manager is Citibank and the bond will be listed on the London Stock Exchange, the first RWF bond to be listed on the London Stock Exchange.
With this transaction, the World Bank aims to contribute to the development of the country’s local capital market and provide an opportunity for international investors to purchase a World Bank bond while gaining exposure to the growing Rwandan economy through the currency.
This bond is the seventh sub-Saharan African currency that the World Bank has issued or is linked to.
“The World Bank is pleased to support the development of the Rwandan capital market through this bond transaction by drawing international investor’s attention to the economic potential of Rwanda,” said World Bank Vice President and Treasurer Jingdong Hua.
“We appreciate the World Bank issuing its first bond in Rwandan Franc and providing their support for our growing domestic capital market,” said John Rwangombwa, Governor of the Central Bank of Rwanda.
“Markets are key to achieving our long-term goals, as articulated in Rwanda’s Vision 2050 that captures our aspirations for a secure, prosperous and modern future,” he added.
“This is an important transaction for Citi that supports the World Bank’s efforts to develop local capital markets in Africa. Capacity building in local capital markets is a critical component of international development finance. This transaction highlights the potential to grow further demand from international investors in these markets,” said Will Weaver, Head of EMEA Debt Capital Markets and Syndicate.
“We are delighted to welcome the first Rwandan Franc bond to list on our markets, a strong signal of confidence in Rwanda’s economy. London Stock Exchange is uniquely placed to offer funding channels for local currency bonds, and we continue to support the development of African capital markets,” said Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG.
The RWF-denominated bonds offer investors an annual coupon of 9.25 per cent and are payable in USD.
The bonds settle on January 24, 2020, and mature on January 20, 2023.