The Government of Rwanda, through the National Bank of Rwanda (BNR), has issued treasury bonds valued at Frw 20 billion, with a maturity period of seven years.
The purchase window for the bonds opened on October 21 and will close on October 23, 2024.
Treasury bonds are a tool used by the government to raise funds for national development projects. The value of the bonds is determined based on the government’s financial needs, and they also provide investment opportunities for individuals seeking long-term savings.
When individuals purchase treasury bonds, they are essentially lending money to the government in exchange for interest, and they are reimbursed their initial investment at the end of the bond’s maturity period.
The Rwandan government launched its treasury bond program in 2008 to raise resources for development. The main buyers of these bonds include financial institutions, insurance companies, and individual investors, whose participation has increased, especially after a major awareness campaign highlighting their benefits began in 2014.
Additionally, the government has created opportunities for treasury bondholders, allowing them to use bonds as collateral for bank loans to support their personal and business growth.
By Fabrice Bizimana