Return of Investment (ROI), is more than a term when it comes to business deals. It is more than a tool, a weapon and a strategy. It is a guideline when conducting any income generating activity. Used widely in the economy, this ROI will tell you the pros and cons of investments. Probably it is not every single day one is struck by a glorious opportunity to invest but when it does, you need to be alert to the ramifications thereon.
Even when there is subsidy, or an external source to fund these investments, a shrewd piece of business can be considered. The awaiting day is finally over perhaps to many in East Africa if they can wake up and smell the coffee, a new deal on the table.
Rwandans have yet another opportunity to invest, save and support the national development effort after National Bank of Rwanda (BNR) announced bids for five-year Rwf10 billion Treasury bond.
Pierre Celestin Rwabukumba, the RSE chief executive officer, said investing in Treasury bonds ensures regular income, adding that they are risk-free.
“Treasury bonds are a good asset class like any other income-generating instruments, which ensure investors regular income (every six months), as well as a tax incentive of 5 per cent withholding on interest income as opposed to 15 per cent ordinarily.
“They are also a risk free investment as government does not default or delay to pay the interest, and predictability of income during the whole lifetime of the bond,” he added.
According to bid notice from the central bank, money raised from the TB issuance will, like the previous ones, be used to fund infrastructure projects and support the local capital market development.
The statement published on Monday August 14 indicates added that bids will open Monday August 21 and on Wednesday August 23 (4.30pm). Investors need to open central securities depository accounts with licensed commercial banks or capital market brokers to participate, the statement added. The bond issuance, scheduled for August 23, and it will be listed on the Rwanda Stock Exchange on August 29.
Its coupon rate will be determined at the close of book-building on August 23, while its redemption date is 19/08/2022, BNR indicates.
Government has been issuing regular bonds since 2014 under its quarterly TB issuance programme.