IFC Issues Rwanda Franc “Umuganda” Bond to Support Rwanda’s Capital Markets

Kigali, Rwanda, July 21, 2025—In a move to support the development of Rwanda’s capital markets, IFC, a member of the World Bank Group, issued a 24 billion Rwandan franc bond— equivalent to approximately 17 million US dollars.

The eight-year, amortizing bond helps pave the way for more international borrowers to issue bonds in the country and is IFC’s first onshore Rwanda franc denominated bond in eleven years.

Money raised through the bond will go towards a digital infrastructure project in the country—helping the client mitigate risks associated with currency fluctuations that occur when borrowing in US dollars or another international currency.

The bond—listed on the Rwanda Stock Exchange—attracted diverse investors, including pension funds, insurance companies, banks, and asset managers, among others. The issuance was 1.75 times oversubscribed and carries a coupon of 10.50%, approx. 0.55% below the interpolated government yield. BK Capital and Rand Merchant Bank were co-lead managers.

IFC issued its inaugural Rwandan franc onshore bond in 2014, when the term “Umuganda bond” for domestic Rwanda franc issuances by non-resident entities was coined. That issuance marked the first placement by a non-resident issuer in Rwanda’s domestic capital markets.

“IFC’s second Umuganda bond will support our work to deepen domestic capital markets in Rwanda,” said Yusuf Murangwa, Rwanda’s Minister of Finance and Economic Planning. “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.”

"We are excited to return to Rwanda's domestic capital markets with this bond that will support critical infrastructure and deepen domestic capital markets in the country," said Mary Porter Peschka, IFC’s Director for Eastern Africa. "The bond offers investors exposure to IFC’s triple-A rating, while also enabling IFC to provide local currency financing to an important project that will enhance digital connectivity.”

Last year, IFC issued two Rwanda franc-denominated offshore bonds that are listed on the London and Luxembourg Stock Exchanges, respectively.

IFC has been supporting capital market reforms through programs such as the Rwanda Capital Market Development project, a joint IFC-World Bank engagement that provides advice on increasing secondary market liquidity in the government bond market, increasing the supply and issuance of non-government bonds, and developing a more diversified, professional investor base. This is aimed at increasing access to long-term local currency finance for key sectors in Rwanda.