IFC Issues Landmark 24 Billion Rwandan Franc “Umuganda” Bond to Bolster Capital Markets
KIGALI,RWANDA – July 21,2025 – The International finance Corporation (IFC) has successfully issued a 24 billion rwandan franc (approximately $17 million) bond,dubbed the “Umuganda” bond,marking a significant step in developing Rwanda’s capital markets. This eight-year bond, listed on the Rwanda Stock Exchange, aims to finance a digital infrastructure project within the country while mitigating exchange rate risks frequently enough associated with foreign currency loans.
The “Umuganda” bond program, first introduced in 2014, designates Rwandan franc-denominated offerings by non-resident entities. This latest issuance underscores Rwanda’s commitment to deepening it’s financial markets and attracting investment in local currency.”Obligation emissions by international borrowers such as the IFC create new investment opportunities for national investors while mobilizing funding in Rwandan francs essential to local businesses,” stated Yusuf Murangwa, Rwanda’s Minister for Finance and Economic Planning.
Arranged by BK Capital and Rand Merchant Bank, the bond garnered ample interest from Rwandan institutional investors, including pension funds, insurers, banks, and asset managers. The issuance was oversubscribed by 1.75 times, featuring a coupon rate of 10.50%, which is 55 basis points lower than the yield on government obligations.
This is the IFC’s second “Umuganda” bond. The inaugural issuance in 2014,which raised 15 billion Rwandan francs,was a pioneering move as the first placement by a non-resident issuer in the Rwandan financial markets. the IFC anticipates that this new program will encourage more international borrowers to tap into the Rwandan debt market.In 2024, the IFC also issued two offshore bonds denominated in Rwandan francs, which were listed on the London Stock Exchange and the Luxembourg Stock Exchange, further demonstrating its commitment to the rwandan franc market.