Rwanda to issue a $1 billion Eurobond next year

Rwanda plans to sell its second international bond of as much as $1 billion next year to fund the construction of an airport and power plants, President Paul Kagame said.

The country wants to build on the success of the 10-year $400m Eurobond issued in April 2013 that was more than eight times oversubscribed, Kagame said in an interview with Bloomberg at the US-Africa Leaders Summit in Washington on Tuesday.
"We might go for double that or more, up to $1b," Kagame said.

He said investor appetite for Rwandan bonds was a vindication of his policies and show investors are undeterred by criticism from human-rights advocates that the government is stifling political freedoms.
The President said the money from the bond sale will fund infrastructure projects, including the upgrading Kigali International Airport and the construction of a 150-megawatt geothermal plant, as well as financing the Lake Kivu methane power plant project that is expected to produce 100MW of power.
The money from the first bond issue was also used to fund infrastructure projects like the Kigali Conventional Centre, according to the finance ministry.

Bond yields
Yields on Rwanda's Eurobond, due May 2023, have dropped 140 basis points, or 1.4 percentage point, this year to 6.076 per cent as of Monday.

Rwanda is one of Africa's fastest-growing economies, with growth averaging 7 per cent over the past five years. The economy is forecast to expand 7.5 per cent this year and next, according to estimates from the International Monetary Fund.
As if to underlines the growing appetitive for high-yielding debt among investors, especially offshore and institutional investors, the IFC, World Bank's private sector lending arm, Rwf15.5b local currency-based bond issued in May was oversubscribed by over 111 per cent, raking in Rwf32.8b. Earlier in February, the government issued a Rwf12.5b bond that was oversubscribed by 140 per cent.

http://www.newtimes.co.rw/news/index.php?i=15806&a=79031

Surprised?
No! Sasa jiulize ni kina nani wameshabikia sana MONETARY UNION ya EAC na kwa nini. Bond ya kwanza ilikuwa over-subscribed. matokeo yake kwenye currency ya hao jamaa yanafahamika. Same phenomenon is seen over elsewhere among our neighbours. Siku tukiingia mkenge na kushabikia common currency bila ya shillingi yetu kuwa tofauti na mwenendo uliopo tutanasa kisawasawa!

DoubleOSeven said:

Surprised?
No! Sasa jiulize ni kina nani wameshabikia sana MONETARY UNION ya EAC na kwa nini. Bond ya kwanza ilikuwa over-subscribed. matokeo yake kwenye currency ya hao jamaa yanafahamika. Same phenomenon is seen over elsewhere among our neighbours. Siku tukiingia mkenge na kushabikia common currency bila ya shillingi yetu kuwa tofauti na mwenendo uliopo tutanasa kisawasawa!

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Unaweza kutoa shule zaidi kwenye hizo aspects miye bado naive

MUKAMASIMBA said:

Rwanda plans to sell its second international bond of as much as $1 billion next year to fund the construction of an airport and power plants, President Paul Kagame said.

The country wants to build on the success of the 10-year $400m Eurobond issued in April 2013 that was more than eight times oversubscribed, Kagame said in an interview with Bloomberg at the US-Africa Leaders Summit in Washington on Tuesday.
"We might go for double that or more, up to $1b," Kagame said.

He said investor appetite for Rwandan bonds was a vindication of his policies and show investors are undeterred by criticism from human-rights advocates that the government is stifling political freedoms.
The President said the money from the bond sale will fund infrastructure projects, including the upgrading Kigali International Airport and the construction of a 150-megawatt geothermal plant, as well as financing the Lake Kivu methane power plant project that is expected to produce 100MW of power.
The money from the first bond issue was also used to fund infrastructure projects like the Kigali Conventional Centre, according to the finance ministry.

Bond yields
Yields on Rwanda's Eurobond, due May 2023, have dropped 140 basis points, or 1.4 percentage point, this year to 6.076 per cent as of Monday.

Rwanda is one of Africa's fastest-growing economies, with growth averaging 7 per cent over the past five years. The economy is forecast to expand 7.5 per cent this year and next, according to estimates from the International Monetary Fund.
As if to underlines the growing appetitive for high-yielding debt among investors, especially offshore and institutional investors, the IFC, World Bank's private sector lending arm, Rwf15.5b local currency-based bond issued in May was oversubscribed by over 111 per cent, raking in Rwf32.8b. Earlier in February, the government issued a Rwf12.5b bond that was oversubscribed by 140 per cent.

http://www.newtimes.co.rw/news/index.php?i=15806&a=79031

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Sisi badala ya kufanya hivyo kugharamia miradi mikubwa tunawabembeleza matapeli kuja kuwekeza Tanzania na tunaishia kuibiwa

amkawewe said:

Unaweza kutoa shule zaidi kwenye hizo aspects miye bado naive

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Assume EAC common currency inapatikana. Stronger currencies za nchi wanachama LAZIMA zitabadilishwa (conversion rate na siyo exchange) kwa kiasi kikubwa zaidi. Weaker currencies zitaambulia kiduchu. Implications are obvious. Mfano wa Deautsche Mark to the euro versus Drachma ya Greece at the time.

Sikuhizi hadi mkikopa mnataka kuja kutujulisha, kweli mna mbwembwe za kutaka kujifanya wa matawi ya juu wenzenu wanapotoa government bonds wanapeleka kwenye bond markets, wakati nchi za afrika bond hazina tofauti na kuomba donors aid na masharti yake tofauti na bonds za nchi ya dunia ya kwanza.

Simseme tu rwanda inataka kukopa euro billion kuliko hizi mbwembwe za kujifanya mnaweza fanya hivyo bila ya uratibu wa IMF, something which is not true.

Shame on tz.! We are not even rate!😕

Shame on tz.! We are not even rated😕!

Ndachuwa said:

Sisi badala ya kufanya hivyo kugharamia miradi mikubwa tunawabembeleza matapeli kuja kuwekeza Tanzania na tunaishia kuibiwa

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Mh! we wa wapi? hiyo Amount ni sawa na 1.6 Trilion, hivi sisi si Tuli BailOut wafanyabiashara( Sio Wakulima kumbuka) wa Pamba kwa 1.4 Tril.

Ndachuwa said:

Sisi badala ya kufanya hivyo kugharamia miradi mikubwa tunawabembeleza matapeli kuja kuwekeza Tanzania na tunaishia kuibiwa

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Kitu unachotakiwa kujua ni kuwa huo ni mkopo kama mikopo mingine tu na ni mkopo mpya ambao maana yake ni mzigo mpya ambao walipa kodi wa Rwanda wanabebeshwa ambao watatakiwa kulipa.

Ushauri mzuri ungekuwa kuwasihi viongozi waafrika wawe wa Rwanda au Tanzania wajitahidi kupunguza ukopaji ambao unazidi kuongeza mizigo kwa walipa kodi.

Kazuiwa kuiba kongo lazima atembeze bakuli, hureeee jk!!

Te te te atauza sana bond...

Nyugunyugu wa mama said:

Kazuiwa kuiba kongo lazima atembeze bakuli, hureeee jk!!

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..ukisha-issue hiyo bond ukasema fedha ni kwa ajili ya project fulani, tayari time will be ticking on you kuhusu kumaliza project on time, kupata faida kutokana na mradi, na kuanza kurudisha fedha za watu.

..binafsi sidhani tunaweza kumuamini JK na utawala wake ku-finance any major infrastructure project kwa mtindo huu wanaotaka kutumia Rwanda.

..Sababu zangu ni kwamba utawala wa JK uko too sluggish ktk utekelezaji, na wanaendekeza sana rushwa. Mnaweza kushtukia bond imeshafikia nusu ya maturation time wakati bado JK and his cronies wanapiga dana-dana za ten percent zao.

cc MUKAMASIMBA, Happy Feet, Fx Trader

JokaKuu said:

..ukisha-issue hiyo bond ukasema fedha ni kwa ajili ya project fulani, tayari time will be ticking on you kuhusu kumaliza project on time, kupata faida kutokana na mradi, na kuanza kurudisha fedha za watu.

..binafsi sidhani tunaweza kumuamini JK na utawala wake ku-finance any major infrastructure project kwa mtindo huu wanaotaka kutumia Rwanda.

..Sababu zangu ni kwamba utawala wa JK uko too sluggish ktk utekelezaji, na wanaendekeza sana rushwa. Mnaweza kushtukia bond imeshafikia nusu ya maturation time wakati bado JK and his cronies wanapiga dana-dana za ten percent zao.

cc MUKAMASIMBA, Happy Feet, Fx Trader

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Mkuu kwa ufahamu mdogo wa serikari involvement ni kwamba Central Banks ndio zina facilitate such arrangements na kwa nchi za africa ni kupitea either IMF/WB ambapo hata kama mambenki ya private ndio yananunua hizo governmnt bills mashirika yaleyale ndio facilitators na pretty much everything naona kama mkopo wa donors isipokuwa tu huu ni kutoka kwa private lenders sio sawa kabisa na bonds kama tuzijuazo huko marekani au nchi za europe. Na ulipaji wake wa bond za afrika ni ule ule tu kama deni lingine la nje isipokuwa hili lina riba kubwa, i am not suprised Kigali is desperate na aina hela ni juzi magazeti yao wamelikolomia hili swala.

Kwa Tanzania binafsi naamini nothing tangible will be seen unless kwanza tuweze kuweka skilled peoople in management levels, yaani unasikiliza mijadala ya kimataifa waafrika bado rushwa iunduwe vyombo vya kuzidhibiti, i mean come on mtu unaenda kwenye dirisha la serikari unakutana na mhudumu anadai kitu kidogo or else forget of the service miaka nenda miaka rudi afukuzwi kazi. Kwenye taarifa ya habari jana usiku nimeona eti mgonjwa ajatibiwa kisa mama ajatoa rushwa. Sasa unataka kuniambia alieomba rushwa alikaa pembeni ya kitanda cha mgonjwa siku nzima akisubiri mama arudi na rushwa ya sh50,000 na kuzuia wengine wasimtibu if not atuoni tatizo na management ya kujua nini kinaendelea kwenye mashirika yao.

To me this is just insane hapa kwanza inaonekana manager tu huwezo wa kuendesha shirika in the first place ndio tatizo linapo anzia na isitoshe hakuna ma-manager wenye kuona umuhimu wa kupata sifa za kibiashara kwa sababu wateja in their eyes kama wanatufanyia favor sasa usitegemee improvement leo wala kesho maana kuna policing bodies too and they act on nothing.

Kuna vitu vingi sana lakini management is a major issue kwenye mashirika ya Tanzania ukijumlisha na kuwa accountability ni almost zero wengine tumeshaanza kukubali mabadiliko in ur life time tusahau..

JokaKuu said:

.
..binafsi sidhani tunaweza kumuamini JK na utawala wake ku-finance any major infrastructure project kwa mtindo huu wanaotaka kutumia Rwanda.

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Hizo infrastructure za Mawasiliano kuanzia mkongo wa Taifa ambao hadi Rwanda Inautumia na mabarabara ya lami nchi nzima kajenga mama yako au serikali ya Kikwete?

Happy Feet said:

Sikuhizi hadi mkikopa mnataka kuja kutujulisha, kweli mna mbwembwe za kutaka kujifanya wa matawi ya juu wenzenu wanapotoa government bonds wanapeleka kwenye bond markets, wakati nchi za afrika bond hazina tofauti na kuomba donors aid na masharti yake tofauti na bonds za nchi ya dunia ya kwanza.

Simseme tu rwanda inataka kukopa euro billion kuliko hizi mbwembwe za kujifanya mnaweza fanya hivyo bila ya uratibu wa IMF, something which is not true.

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Hater huna idea na ulichoandika,kaa kimya tuu kupunguza aibu

Happy Feet said:

Sikuhizi hadi mkikopa mnataka kuja kutujulisha, kweli mna mbwembwe za kutaka kujifanya wa matawi ya juu wenzenu wanapotoa government bonds wanapeleka kwenye bond markets, wakati nchi za afrika bond hazina tofauti na kuomba donors aid na masharti yake tofauti na bonds za nchi ya dunia ya kwanza.

Simseme tu rwanda inataka kukopa euro billion kuliko hizi mbwembwe za kujifanya mnaweza fanya hivyo bila ya uratibu wa IMF, something which is not true.

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ehehehe! wana mbwembwe hawa.......

Nyugunyugu wa mama said:

Kazuiwa kuiba kongo lazima atembeze bakuli, hureeee jk!!

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Na bado, cow watamkimbia.

Koba said:

Hater huna idea na ulichoandika,kaa kimya tuu kupunguza aibu

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Wewe tueleze idea ya hiyo issue. Ndo nyie mnaoburuzwa buruzwa matokeo yake mnaingia kwenye genocide nyingine.
We boya kweli

Koba said:

Hater huna idea na ulichoandika,kaa kimya tuu kupunguza aibu

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Home work yako ya leo inahusu "Brady Bonds" kama utasoma vizuri utawaelimisha na wengine chanzo chake na kwanini Tanzania na nchi nyingi za third world zilifisika miaka ya 80.

Safari hii mtatia akili mirija ya congo imeshakatwa nchi inadaiwa mpaka basi, on the other side sie tunasubiri kuvuna gas na mafuta jumlisha jamii iamke na kutumia fursa zingine ndani ya kilometa mraba za ardhi ya tanzania inayo offer, no to free movement of people.


https://finance.yahoo.com/education/bond/article/101192/Going_Global_Brady_Bonds