The eight-year amortising bond marks IFC's return to Rwanda's onshore market for the first time in 11 years. It's also its second 'Umuganda bond' denominated in Rwandan francs.
The bond, listed on the Rwanda Stock Exchange, was 1.75 times oversubscribed and carries a fixed coupon of 10.50%, about 0.55% below the interpolated government yield.
Proceeds from the bond will be used to finance a local digital infrastructure project, allowing the client to avoid currency risk associated with borrowing in U.S. dollars or other foreign currencies.
Mary Porter Peschka, IFC's Director for Eastern Africa, said the bond aligns with IFC's long-term goal of strengthening capital markets while supporting critical infrastructure.
'The bond offers investors exposure to IFC's triple-A rating, while also enabling IFC to provide local currency financing to an important project that will enhance digital connectivity,' she said.
IFC coined the term 'Umuganda bond' in 2014 when it became the first non-resident issuer to place a Rwandan franc bond in the domestic market. The success of the current issuance is seen as a vote of confidence in Rwanda's capital market framework and regulatory environment.
The bond attracted a wide range of investors, including pension funds, insurance companies, banks, and asset managers. BK Capital and Rand Merchant Bank served as joint lead managers on the transaction.
Finance Minister Yusuf Murangwa welcomed the issuance as a positive step for local market development.
'IFC's second Umuganda bond will support our work to deepen domestic capital markets in Rwanda,' he said. 'Bond issuances by international borrowers such as IFC create new investable opportunities for domestic investors while raising much-needed Rwanda franc financing for local businesses.'
Beyond bond issuance, IFC continues to support capital market reforms in Rwanda through the Rwanda Capital Market Development Projectâ€"a joint initiative with the World Bank. The project focuses on improving government bond market liquidity, increasing non-government bond issuance, and building a more diversified and professional investor base.
In 2024, IFC also issued two offshore Rwanda franc-denominated bonds listed on the London and Luxembourg Stock Exchanges.
Wycliffe Nyamasege
