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
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.
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 www.ifc.org