This isn’t getting much attention outside the business media, but I think it’s worth a broader look. As I noted earlier, when Rwanda faced foreign aid cuts or freezes in aid due to allegations that President Paul Kagame was supporting a violent rebellion in neighboring Congo, Kagame simply announced he would get money by issuing a bond.
And so they have, to the tune of about $400 million. As the Wall Street Journal and Bloomberg Business report, Rwanda has issued $400 million in 10-year sovereign debt that is popular with investors. Bloomberg’s report said Thursday that “the East African nation known for a 1994 genocide that killed 800,000 people, made its international bond market debut today. Investors seemed to like what they saw.”
The WSJ article noted:
Rwanda holds a “junk” rating from Standard & Poor’s Ratings Services and Fitch Ratings due to its heavy reliance on foreign aid and its turbulent recent history…. (but) is seen by investors as a country with high potential, with an economic growth rate averaging 8% over the past decade.