The International Finance Corporation (IFC) has successfully issued a RWF 24 billion (approximately $17 million) bond in Rwanda’s domestic capital market—its first Rwandan franc-denominated onshore bond since 2014.
This eight-year amortizing bond is now listed on the Rwanda Stock Exchange and received strong investor interest, being oversubscribed by 1.75 times.
The bond carries a 10.50% coupon, slightly below the interpolated government yield by about 0.55%. Proceeds from the issuance will fund a key digital infrastructure project in Rwanda. By opting for a local-currency structure, the IFC helps shield its clients from exchange rate volatility, a major risk associated with foreign-denominated borrowing.
The issuance attracted a broad range of institutional investors, including pension funds, insurers, banks, and asset managers. BK Capital and Rand Merchant Bank acted as co-lead managers for the transaction.
This is IFC’s second “Umuganda bond”—a term used for local-currency bonds issued in Rwanda by non-resident entities—further reinforcing its commitment to developing local financial markets.
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Rwanda’s Finance Minister, Yusuf Murangwa, lauded the move, saying it broadens domestic investment options while enhancing access to long-term local currency financing. His remarks reflect Rwanda’s ongoing push to strengthen its capital markets and reduce reliance on foreign currency loans.
IFC’s strategy in Rwanda aligns with its broader agenda across frontier markets: to deepen local currency capital markets, improve financial resilience, and reduce reliance on external debt. In Rwanda, most private sector lending is still short-term or denominated in foreign currencies, exposing borrowers to currency risk and interest rate volatility.
By introducing a triple-A rated bond into the Rwandan franc market, IFC not only gives institutional investors access to a high-quality local asset but also demonstrates the viability of non-sovereign corporate bonds in the country. The strong oversubscription also points to a growing appetite among local investors for diversified and lower-risk investment products.
The move supports wider reforms led by the IFC and World Bank under the Rwanda Capital Market Development Project. These efforts aim to boost secondary market liquidity and expand the range of private sector debt instruments available locally.
As Rwanda continues to prioritize infrastructure development, fintech expansion, and regional integration, a well-functioning local-currency bond market will be critical in financing long-term growth sustainably.
With this new bond, the IFC sets a benchmark for future private sector issuances, encouraging participation in Rwanda’s capital markets.
