IFC Issues $17M Local-Currency Bond in Rwanda

BREAKING NEWSJuly 28, 2025 at 10:36 AM UTC

TLDR

The International Finance Corporation (IFC) has issued a RWF 24 billion ($17 million) bond in Rwanda’s domestic capital market
The eight-year amortizing bond is listed on the Rwanda Stock Exchange and was 1.75 times oversubscribed
This is IFC’s second “Umuganda bond,” a term used for local-currency bonds issued by non-resident entities in Rwanda

The International Finance Corporation (IFC) has issued a RWF 24 billion ($17 million) bond in Rwanda’s domestic capital market, marking its first Rwandan franc onshore bond since 2014. The eight-year amortizing bond is listed on the Rwanda Stock Exchange and was 1.75 times oversubscribed, attracting investors from pension funds, insurers, banks, and asset managers.

The bond carries a 10.50% coupon—about 0.55% below the interpolated government yield—and will finance a digital infrastructure project in Rwanda. The local-currency structure helps mitigate exchange rate risk for the IFC’s clients.

BK Capital and Rand Merchant Bank served as co-lead managers. This is IFC’s second “Umuganda bond,” a term used for local-currency bonds issued by non-resident entities in Rwanda.

Rwanda’s Finance Minister Yusuf Murangwa welcomed the move, noting its role in expanding domestic investment options and improving access to local currency funding.

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Key Takeaways

IFC’s latest bond issuance underlines its strategy to strengthen local currency capital markets across frontier economies. In Rwanda, long-term local financing remains limited—most private sector borrowing relies on short-term credit or foreign-denominated debt that carries exchange rate risks. By issuing a triple-A rated bond in Rwandan francs, IFC provides institutional investors with a high-quality local asset while proving the viability of non-government corporate bonds. The bond’s oversubscription signals growing appetite for diversification among Rwandan institutional investors. The move also complements broader market reforms led by IFC and the World Bank through the Rwanda Capital Market Development project. These include efforts to improve secondary market liquidity and increase the supply of private sector debt instruments. With Rwanda targeting infrastructure, fintech, and regional integration, the development of a local-currency bond market is key to reducing dependency on external debt and fostering long-term investment. IFC’s issuance sets a benchmark for future private sector participation in the local bond market.

Finance

IFC

Rwanda

Bond

Capital Markets