REOPEN FIFTEEN YEARS FIXED COUPON TREASURY BOND ISSUE N° FXD 3/2021/15YRS DATED 19/05/2021

The National Bank of Rwanda on behalf of the Government of Rwanda invites bids for fifteen Years Fixed Coupon Treasury Bond whose terms and conditions are as follows:

Issuer: Government of Rwanda 

Issue date: 19/01/2022 

Settlement date: 21/01/2022 (T+2) 

Settlement price: Clean price plus Accrued Interest (AI) (AI =FRW 2.163 per FRW 100) 

Amount: FRW 20 billion 

Redemption Date: 2/05/2036 

Tenor:  14.33 Years 

Purpose: Capital Market development only         

Coupon: 12.500% p.a 

Interest payment dates (semi-annually)

20-May-22; 18-Nov-22; 19-May-23; 17-Nov-23;17-May-24; 15-Nov-24;  16-May-25; 14-Nov-25; 15-May-26; 13-Nov-26; 14-May-27;  12-Nov-27; 12-May-28; 10-Nov-28; 11-May-29; 09-Nov-29; 10-May-30; 08-Nov-30; 09-May-31; 07-Nov-31; 07-May-32; 05-Nov-32; 06-May-33;  04-Nov-33; 05-May-34; 03-Nov-34; 04-May-35; 02-Nov-35; 02-May-36 

Issuing and Paying agent:       National Bank of Rwanda (Central Bank of Rwanda) 

Mode of issuing:          Through a book building method 

Minimum amount for:   

            -  Competitive bids       FRW 50 million 

            -  Non-competitive bids FRW 100,000 

Price:   Price will be quoted by competitive bidders using the yield to three decimal places.               

Listing: To be listed on Rwanda Stock Exchange (RSE) 

Trading: Secondary trading in multiples of FRW 100,000 will commence on Tuesday 25/01/2022 on the Rwanda Stock Exchange (RSE).         

Classification: That bond is benchmark Bond 

Rediscounting: National Bank of Rwanda will rediscount the bonds as a last resort at 3% below the prevailing market yield or coupon rate whichever is higher, upon written confirmation that there is no buyer from the RSE         

Day count convention:  Actual/364        

Tax: Interest will be subject to withholding tax at the rate of 5%   

Eligibility: Resident and non-resident who have opened a CSD account through Licensed commercial banks or Capital Market Intermediaries. 

Investors interested in custody services, may contact Bank of Kigali or KCB Rwanda for further details  

Bids:    All investors are required to complete bond application forms (see annex) available on National Bank of Rwanda website: www.bnr.rw  

Reception of bids: Monday 17/01/2022 to Wednesday 19/01/2022 at 4:00 pm, Kigali time             

Bids closure:   Wednesday, 19/01/2022 at 4:00 pm. Kigali time

Allotment: The allotment process is based on the following categories:

                       ï‚· Retail investors (Domestic)

                       ï‚· Institutional investors (domestic and regional)

                       The allotment policy follows also the EAC common market protocol

Summary of Treasury Bond Results:  The summary of Treasury Bond results of the issued Bond will be published on National Bank of Rwanda website: www.bnr.rw 

Successful results: Successful bidders will get their results through email from 19/01/2022, at 5:00 pm Kigali time

Placing Agents: All bids must be submitted to the National Bank of Rwanda through any of the licensed commercial banks or Capital Market intermediaries.

Payment and settlement procedures:  Commercial banks are responsible for settling their own successful bids and their clients’ bids. If settlement coupon payment or redemption date falls on public holiday, value date shall be the next business day.

Right to accept applications: The National Bank of Rwanda reserves the right to allot the application in part or reject in total at its discretion.

Source: https://www.bnr.rw/browse-in/financial-market/money-market-instruments/treasury-bonds/