Government Bonds in Rwanda

At a glance

Key features and terms. Bid conditions, dates and tax treatment are set out in each issue’s prospectus.^1,2

Source: National Bank of Rwanda: Prospectus for Issuance of Rwanda Government Bond FXD 1/2026/10YRS (January 2026); National Bank of Rwanda: Directive on Treasury Bond Issuance (March 2018)^1,2

What a government bond is

A treasury bond is money lent to the Government of Rwanda in return for a security. The government borrows from investors and pays interest under the bond’s terms. At maturity, the bondholder is entitled to the par value plus the final accrued interest. The National Bank of Rwanda issues the bonds on the government’s behalf and acts as its banker and fiscal agent.²

Bonds are first sold in the primary market, through a bidding process described in the issue prospectus. They can then be bought and sold in the secondary market. The 2018 issuance directive defines treasury bonds as long-term securities and sets a minimum maturity of two years. Each prospectus gives the particular bond’s tenor, coupon, dates, bid requirements and other terms, so investors should distinguish the terms of one issue from those of another.^1,2,3

Listed bond rates in 2026

The Rwanda Stock Exchange’s 2026 debt-instrument listings include government bonds with maturities of seven to 20 years. The examples below show their stated coupons. Coupon rates are fixed terms of the bond, while yield to maturity describes the return assuming the bond is held to maturity. A buyer should check both the coupon and the listed yield, particularly for a reopened bond.^2,4

Selected government treasury bonds appearing in the RSE 2026 listings.⁴

Source: Rwanda Stock Exchange: Debt Instruments⁴

How to buy at issue

The exact process and timetable are issue-specific. For the January 2026 bond, applications were accepted from 12 January until 4:00 pm Kigali time on 14 January. Its issue date was 14 January and settlement date was 16 January, two business days later. Use the relevant prospectus to confirm the dates, account arrangements and instructions before applying.¹

The general participation requirements and the January 2026 application route were as follows:^1,2

• Arrange a Central Securities Depository (CSD) account. For the January 2026 issue, eligible residents and non-residents had to have a CSD account opened through a licensed commercial bank or capital-market intermediary.
• The 2018 directive also requires a current account denominated in Rwandan francs at a commercial bank in Rwanda, a completed and signed application form, and the minimum amount for the selected bid type.
• Read the prospectus and complete the application form available from the National Bank of Rwanda. The prospectus specifies the issue’s bidding window and closing time.
• Submit the bid to the National Bank of Rwanda through a licensed commercial bank or capital-market intermediary. Choose either a competitive or non-competitive bid.
• If successful, arrange settlement on the date in the prospectus. The January 2026 prospectus said commercial banks would settle their own successful bids and bids submitted for their clients.

Source: National Bank of Rwanda: Prospectus for Issuance of Rwanda Government Bond FXD 1/2026/10YRS (January 2026); National Bank of Rwanda: Directive on Treasury Bond Issuance (March 2018)^1,2

An application does not guarantee that the full amount requested will be allotted. For the January 2026 issue, the National Bank of Rwanda reserved the right to allot part of an application or reject it. Successful bidders were to receive results by email, while the global results were to be published on the bank’s website.¹

Competitive and non-competitive bids

A non-competitive bidder does not quote a yield or price and accepts the rate set through the issue process. The National Bank of Rwanda’s treasury-bond guidance says this kind of bid ensures the bidder will get the bond, subject to the issue’s terms. In the January 2026 prospectus, the minimum non-competitive bid was FRW 100,000.^1,3

A competitive bidder quotes a yield or price, and the bid is considered according to how it compares with the rate set for the bond. For the January 2026 issue, competitive bidders quoted a yield to three decimal places; the minimum competitive bid was FRW 50 million. That high minimum makes this route distinct from the smaller non-competitive bid. The prospectus sets the pricing method for each issue.^1,2,3

Coupon, price and yield are different measures. The coupon is the bond’s promised annual interest rate, generally paid semi-annually. A price is quoted in the bidding or trading process, while yield to maturity is the rate of return assuming the bond is held until maturity. The February 2026 results for a reopened seven-year bond illustrate the distinction: its coupon was 11.50% and its yield was 11.30%.^2,5

Interest, tax and maturity

The January 2026 10-year bond prospectus set semi-annual interest dates and stated that interest was subject to 5% withholding tax. This is the stated treatment for that issue; check the prospectus for the bond being considered, rather than applying the same rate automatically to other securities. The 2018 directive says bond interest is calculated from the coupon rate and paid every six months.^1,2

For the January 2026 issue, the prospectus used an Actual/364 day-count convention. It scheduled redemption for 4 January 2036, when the bond’s par value was due alongside the final accrued interest. If a settlement, coupon-payment or redemption date fell on a public holiday, the prospectus provided for the value date to move to the next business day. Keep the prospectus and settlement records for reference.^1,2

Trading after the auction

After issue, treasury bonds can be traded on the Rwanda Stock Exchange. Under the 2018 directive, investors buy or sell through registered broker-dealers, who provide details of the trading procedure. The RSE states that trades are executed through licensed stockbrokers on its trading platform, with clearing and settlement through the CSD. Its standard settlement cycle is T+2: two business days after the trade date.^2,4

The RSE’s listings show that coupon and yield can differ. For example, a February 2026 reopening of a seven-year bond had an 11.50% coupon and an 11.30% yield; the RSE’s listings also show reopened bonds with other coupon-yield combinations. Before placing a trade, compare the listed coupon, yield and maturity date, and ask a licensed stockbroker about the order and settlement process.^4,5

The January 2026 prospectus describes central-bank rediscounting as a last resort at the prevailing market rate, after written confirmation that there is no buyer on the RSE. It is not the ordinary route described for a sale. Investors planning to sell before maturity should use the listed secondary market and its broker process.¹

Eligibility and the borrowing plan

Residents and non-residents were eligible for the January 2026 bond if they had a CSD account opened through a licensed commercial bank or capital-market intermediary. The 2018 directive also allows investors from East African Community member states, including Rwandans living in Rwanda or abroad, and non-residents to participate. It excludes central and local governments and public institutions receiving central-government budget grants.^1,2

For FY 2026/27, the government’s borrowing plan sets domestic borrowing at FRW 138.8 billion, as part of financing a budget deficit of FRW 2,112.9 billion. The plan also says the government will continue issuing medium- and long-term domestic debt securities and introduce a 25-year treasury bond during the fiscal year. These are plan figures and intentions, not a guarantee of a particular auction date or bond offer.⁶

For a particular investment, compare the issue prospectus with the RSE listing and confirm the bid minimum, coupon, dates, tax terms and settlement instructions. Use the National Bank of Rwanda, a licensed bank or a licensed capital-market intermediary for current issue procedures and account arrangements.^1,2,4