The Government of Rwanda has Successfully Raised USD 620 Million, according to the recent announcement by the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana.
The Government of Rwanda has Successfully Raised USD 620 Million, according to the recent announcement by the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana. The bond was oversubscribed by $1.6billion. Existing bondholders of the 2013 accounted for a significant part of the demand for the bond which proved consistent investor appetite and confidence in the Rwandan economy, underscored by the strong performance and growth of the economy over more than two decades, the minister added.
The Rwandan government plans to use the proceeds of the bond to retire Rwanda’s existing Eurobond which is due in May 2023, in accordance with the country’s debt management strategy to tackle its debt burden. It is expected to reduce annual interest payments over the next 10 years, which will strongly boost Rwanda’s debt sustainability strategy. The funds raised are also expected to accelerate strategic projects in productive sectors that in turn will contribute to the country’s economic transformation efforts.
The fund will also finance priority projects that will support recovery from the economic downturn triggered by the COVID-19 pandemic, strategic investments in health and agriculture sectors to push export growth, safeguard environmental protection and reduce adverse effects of climate change.
The Minister also informed that Rwanda’s economic growth averaged 7.8% over the last two decades and the economy. It is also expected to grow by 5.1% the current year. Rwanda has been ranked by the World Bank as the 38th easiest place to do business globally and 2nd easiest in Africa
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