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Policy - RWANDA GOVERNMENT TREASURY BONDS TENORS: 2 YEARS ISSUE N° : FXD 3/2010/2YRS

NATIONAL BANK OF RWANDA

 

 

 

 

 

 

An opportunity to invest in Rwanda

Government securities

 

 

PROSPECTUS

 

FOR

 

Rwanda Government TREASURY BOND

 

 

TENOR: 2 years

 

 

Coupon interest RATE: 9,5 %

 

 

Total VALUE:  RWF 2.5 billion

 

 

Issue N°: FXD 3/2010/2yrs

 

 

 

 

 

 

 

AGENT: NATIONAL BANK OF RWANDA

 

 

AUCTION DATE: August 19th, 2010.

ISSUE N ° : FXD 3/2010/2YR S

 

The National Bank of Rwanda invites bids for the above Bond whose terms and conditions are as follows:

 

1.

 

2.

 

3.

 

4.

 

5.

 

6.

 

7.

 

8.

 

9.

 

10

 

11.

 

12

 

 

 

13

 

 

 

 

14.

 

 

15

 

16.

 

 

 

17.

 

 

 

18.

 

19.

 

 

20.

 

 

 

21.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22.

Issuer…………………………………

 

Auction Date ………………………..

 

Amount………………………………

 

Redemption Date…………………….

 

Tenor ………………………………..

 

Purpose………………………………

 

Coupon interest rate…………………..

 

Interest payment dates (semi-annually)

 

Issuing and paying agent………………

 

Mode of issuing………………………..

 

Listing: ………………………………...

 

Trading…………………………………

 

 

 

Minimum amount for:

-   competitive  bids :…………….

 

-   non  competitive  bids :………

 

Price per 100 RWF………………….

 

 

Day count convention:…………………

 

Tax:……………………………………

 

 

 

Eligibility:……………………………

 

 

 

Defaulters:……………………………..

 

Right to accept applications:…………..

 

 

Advantages of Treasury Bonds……….

 

 

 

Auction process:……………………..

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment and settlement procedures…...

 

 

 

 

National Bank of Rwanda

 

August 19th , 2010

 

RWF 2,5 billion

 

August 17, 2012

 

2 Years

 

Capital Market Development  

 

Fixed at 9.5 %.

 

18/02/2011 , 19/08/2011, 17/02/2012, 17/08/2012

 

Registrar, National Bank of Rwanda

 

Multiple bid auction

 

To be listed on Rwanda OTC market.

 

Secondary trading in multiples of Rwf.100, 000 will commence on Friday 27 August 2010 on the Rwanda OTC market.

 

 

RWF 50 million

 

RWF 100,000

 

Quoted at premium, par or discount to three decimal places.

 

Actual/364

 

Discount and interest will be subject to the prevailing tax rate. Withholding tax currently at 15%

 

 

Resident and non residents who have opened   accounts in licensed commercial banks, intermediaries or at the National Bank of Rwanda.

 

Will be suspended from subsequent auctions.

 

National Bank of Rwanda reserves the right to allot the application in part or reject in total at its discretion

 

  • They are transferable and negotiable;
  • They can be pledged as collateral
  • The rate of return is competitive.

 

  • A press release will be issued one week before auction , announcing the auction date, size of issue, coupon rate and other terms and conditions;

 

  • Investors are invited to complete application forms and apply for Treasury bonds (see annex).

 

  • All bids must be submitted to the National Bank of Rwanda through one of the licensed commercial banks or directly for institutional investors with accounts at the National Bank of Rwanda;

 

  • Reception of bids : Up to August 19th ,2010 at 10:00 a.m.

 

  • Successful bids will be accepted in descending order, starting with the highest priced bid until the offered amount is exhausted;

 

  • The results of the auction will be published at NBR website: www.bnr.rw, and the media.

 

Commercial banks will be responsible for settling their own successful bids and the successful bids of other bids  submitted through them;

 

If settlement or coupon payment or redemption date falls on public holiday, value date shall be the next business day.

 

 

  Done at Kigali on August 13th, 2010

 

François KANIMBA,

 

Governor.

 

 

 

NATIONAL BANK OF RWANDA

 

BOND YIELD/PRICE TABLES

 

(2Yr BOND 9.5% coupon rate (Yields at intervals of 0, 125)

 

 

 

YTM

Price

 

 

YTM

Price

 

 

 

 

5,500

107,479

 

 

9,375

100,223

 

 

 

 

5,625

107,234

 

 

9,500

100,000

 

 

 

 

5,750

106,990

 

 

9,625

99,777

 

 

 

 

5,875

106,747

 

 

9,750

99,555

 

 

 

 

6,000

106,505

 

 

9,875

99,334

 

 

 

 

6,125

106,263

 

 

10,000

99,114

 

 

 

 

6,250

106,022

 

 

10,125

98,893

 

 

 

 

6,375

105,782

 

 

10,250

98,674

 

 

 

 

6,500

105,542

 

 

10,375

98,455

 

 

 

 

6,625

105,304

 

 

10,500

98,237

 

 

 

 

6,750

105,066

 

 

10,625

98,020

 

 

 

 

6,875

104,828

 

 

10,750

97,803

 

 

 

 

7,000

104,591

 

 

10,875

97,587

 

 

 

 

7,125

104,355

 

 

11,000

97,371

 

 

 

 

7,250

104,120

 

 

11,125

97,156

 

 

 

 

7,375

103,885

 

 

11,250

96,942

 

 

 

 

7,500

103,651

 

 

11,375

96,728

 

 

 

 

7,625

103,418

 

 

11,500

96,515

 

 

 

 

7,750

103,186

 

 

 

 

 

 

 

 

7,875

102,954

 

 

 

 

 

 

 

 

8,000

102,722

 

 

 

 

 

 

 

 

8,125

102,492

 

 

 

 

 

 

 

 

8,250

102,262

 

 

 

 

 

 

 

 

8,375

102,033

 

 

 

 

 

 

 

 

8,500

101,804

 

 

 

 

 

 

 

 

8,625

101,576

 

 

 

 

 

 

 

 

8,750

101,349

 

 

 

 

 

 

 

 

8,875

101,123

 

 

 

 

 

 

 

 

9,000

100,897

 

 

 

 

 

 

 

 

9,125

100,672

 

 

 

 

 

 

 

 

9,250

100,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     I1              I2                 I3                             In                     FACE VALUE

 

P =

 -------  +   --------    +   --------     +  ….   +  --------   +      ----------------

 

 

(1+r)1        (1+r)2          (1+r)3                      (1+r)n                    (1+r)n

 

 


NATIONAL BANK OF RWANDA

 

 

 

 

 

 

TREASURY BONDS APPLICATION FORM

 

I.                  Bidder :……………………………………………………

Bidder’s Bank  ………………………………………….

Account n°…………………………………………………………….

PO.Box……………………………………………………………….

Fax…………………………………………………………………….

Phone : -fix………………………………………………………….

        -cell …… ………………………………………………..

 

II.               Auction : n° ………………………..of………………………………

Total Amount of tender ……………………………………………….

Maturity………………………………………………………………

Settlement Date………………………………………………………

Maturity date………………………………………………………….

Tender’s total amount ………………………………………...............

 

Tender amount

Price per 100 Rwf([1])

 

 

 

 

 

 

 

 

 

 

 

 

  • Date and signature of the bidder

 

  • This tender constitutes an irrevocable agreement to debit our current account

                        n° …………………in NBR’s books of the net settlement amount ([2]) .

 

  • The tender’s bank or financial institution signature authorises to debit his account in NBR’s books.


[1]([1])To fill by the competitive tenders.

([2] )To fill by the tender without account in NBR’s book.



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