Kigali: Rwanda has listed a $5 million Treasury bonds on the Rwanda Over-the-Counter exchange (ROTC) - marking the fourth government bond to be listed since trading commenced in January 2008.

The bond replaces a two - year Treasury bond worth $10 million (Rwf 5 billion) that expired on January 14.

Officials say the new bond will mature in 2012 and attract a periodic interest of 9.5 per cent per year. The listing brings the total of outstanding bonds at $25.4 million (Rwf 12.7 billion).

Pierre Celestin Rwabukumba, the operations manager at the Rwanda Capital Markets Advisory Council - the body that regulates the ROTC, told The East African that a total of $3,500 (Rwf2 million) worth of Treasury bonds were transacted in one deal during trading last week, at the price of $0.17 (Rwf 98.2), yielding 10.50 per cent at maturity.

According to officials, the Rwanda government targets $20 million worth of Treasury bonds for trading this year.

Claver Gatete, the deputy governor of Bank of Kigali said last week that the government will float another 4,378 bonds worth $4.3 million (Rwf 2.5 billion) in April, with a maturity period of three years and a similar amount for two years in July and October, with a maturity period of five years. In its previous three Treasury bonds, the Rwanda government raised $28.6 million (Rwf14.3 billion).

"The bond is a sign of government commitment to the development of the secondary market," Mr Gatete said.

He added: "Past performance also shows that the people of Rwanda are also getting to understand the importance of capital markets."

Robert Mathu, the executive director of the CMAC said the Rwanda government is making use of the stockmarket to finance infrastructure development.

In 2008 for instance, Rwanda was the first country in East Africa to float a $10 million "municipal bond" to fund the master plan of the Kigali City Council.

Officials at the stockmarket said all government bonds will be determined by the forces of supply and demand.