BNR invited bids on behalf of the Government of Rwanda and set the interest rate at 11.55% per annum.

The bond is a benchmark bond and will be subject to withholding tax at the rate of 5% for all investors.

In July 2019, BNR had opened another 20-year treasury bond worth Rwf 15 billion which attracted the attention of bidders on a 141.03% rate with more than 80 investors in different sectors across Rwanda.

Treasury bonds pay a fixed interest rate on a semi-annual basis. This interest is exempt from state and local taxes but is subject to federal income tax. Bonds are a safe-haven investment for investors since payments are directly made into the owner’s bank account. Owners earn interest until the bond matures.

Bonds can also be given as collateral to the ban when the owner is requesting for a loan. The owner can as well sell back the bond to the capital market.

All bids will be submitted to the National Bank of Rwanda through any of the licensed commercial banks or Capital Market intermediaries. The market will open from Monday, January 20th, 2020 to Wednesday, January 22nd,2020.

@CentralBankRw would like to inform the public that on behalf of @RwandaGov there is a Reopen of 7-year T-Bond worth 15.0 billion.

The market will be open from Monday January 20, 2020 to Wednesday January 22, 2020

Please refer to the prospectus for detailed information. pic.twitter.com/sgyT1570F8

— National Bank Rwanda (@CentralBankRw) January 6, 2020