Politics
Kagame’s Rwandan Economy Rewards With Record Low Yields
“The main risk still remains with aid partners,” Phumelele Mbiyo, the regional head of macroeconomic research at Standard Bank’s Kenyan unit, said by phone from Nairobi on May 13. Mbiyo also said, “Their continued provision of aid remains crucial for the economy.”
Rwanda has made doing business easier in nation by streamlining bureaucracy and tackling public-sector corruption, Sarah Tzinieris, principal Africa analyst at Bath, U.K.-based risk analysis company Maplecroft, said in an e-mailed response to questions May 13.
Mbiyo stated, “Rwanda’s economy is also more diversified than most others issuing Eurobonds in sub-Saharan Africa. … This enables investors to diversify their portfolios.” The country is rated B by Standard & Poor’s and Fitch Ratings, or five levels below investment grade.
Rwanda would be able to sell a second bond “at a slightly lower coupon,” Christian Mejrup, amoney manager at Global Evolution A/S, which oversees $2.1 billion, said by phone from Kolding, Denmark, on May 12. “It would be possible for Rwanda to issue a new Eurobond in the area of 6 percent to 6.25 percent.”
Source: Bloomberg
