• IFC issued a 24 billion Rwandan franc ($17M) local currency bond to boost Rwanda’s capital market and fund digital infrastructure.
• The 8-year "Umuganda" bond was oversubscribed 1.75 times and offers a 10.50% coupon.
• It’s IFC’s second such bond in Rwanda, aiming to attract local investors and reduce currency risk.

The International Finance Corporation (IFC), part of the World Bank Group, announced on Monday, July 21, 2025, it issued a local currency bond worth 24 billion Rwandan francs, about $17 million. This issuance aims to support capital market development in Rwanda.

The eight-year amortizing bond is named "Umuganda," a term introduced in 2014 for Rwandan franc-denominated issuances by non-resident entities. Listed on the Rwanda Stock Exchange, the bond will support financial market development and fund a digital infrastructure project in the country. It will also help reduce risks tied to exchange rate fluctuations, common when borrowing in foreign currencies like the U.S. dollar.

"Bond issuances by international borrowers such as IFC create new investable opportunities for domestic investors while raising much-needed Rwanda franc financing for local businesses," said Yusuf Murangwa, Rwanda’s Minister of Finance and Economic Planning.

According to IFC, BK Capital and Rand Merchant Bank arranged the issuance. It drew strong interest from Rwandan institutional investors, including pension funds, insurers, banks, and asset managers. The bond was oversubscribed 1.75 times and carries a coupon of 10.50%, which is 55 basis points below the interpolated yield on government bonds.

This is IFC’s second "Umuganda" bond. The first, launched in 2014 to raise 15 billion Rwandan francs, was the first placement by a non-resident issuer on Rwanda’s financial markets. IFC expects this new issuance to open the door for more international borrowers seeking to issue bonds in the country.

In 2024, IFC issued two offshore bonds denominated in Rwandan francs, listed on the London Stock Exchange and the Luxembourg Stock Exchange.

Sandrine Gaingne