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Kigali’s Bold Move for Economic Recovery

The Government of Rwanda has raised $620 million through the issuance of the latest 10-year Eurobond bond issuance, the second Eurobond after 2013 when the government last went to the market. The Ministry of Finance and Economic Planning announced on August 2 that Rwanda’s second international bond was oversubscribed nearly three times as it attracted some $1.6 billion in orders. The sale, handled by Deutsche Bank and Citigroup, priced the new debt at a 5.5% yield. Just over half of the proceeds go to refinance the majority of the country’s other outstanding mortgage, which raised $400 million in 2013 and would expire in 2023. Rwanda is the latest among African countries that have issued international bonds since the start of this year, including Kenya that raised $1 billion by issuing a 12-year Eurobond at 6.3% on June 17. Countries like Benin, Cameroon, and Senegal have been to the market this year, and on average, African bond issuances have been oversubscribed three times, reflecting increased investor appetite.