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The East African : Sep 1st 2014
The EastAfrican NEWS AUGUST 30 - SEPTEMBER 5, 2014 INVESTOR CONFIDENCE Mining fi≥ms ≥esist law on mandato≥y listing By ERICK KABENDERA The EastAfrican THE TANZANIA Chamber of Mines has vowed to defy the law making it mandatory for mining companies to list on the Dar es Salaam Stock Exchange. The chamber said its members had already informed the Commissioner for Minerals that mining companies would only go public and offer stock to obtain financing, but not to comply with a law. The Mining Act 2010 re- quires the minister for minerals, in consultation with miners, to make laws on the minimum shareholding requirement and procedures for selling shares to Tanzania nationals through listing on the stockmarket. Nyanda Shuli, the com- munications and advocacy manager at the Tanzania Chamber of Minerals and Energy, said members were aware that the government was determined to implement the law, but the cross listing of African Barrick Gold (ABG) on the DSE in December 2011 had been unsuccessful and its members were cautious. “We will continue negoti- ating with the government on the issue, but we feel that our members should list on the market when it is part of their business strategy,” Mr Shuli said. Moremi Marwa, the chief executive officer of DSE, said ABG had not traded any shares since it cross-listed on the market. 9 Traders at the Rwanda Stock Exchange. Picture: File Domestic bo oversubscrib Five-yea≥ bond issued by Rwandan gove≥nment ≥eceives mo≥e than double the amount in bids By KABONA ESIARA Special Correspondent A $22 million five-year domestic bond issued by the Rwandan government last Wednesday has been oversubscribed, with the central bank receiving $50.5 million in bids. In February, the govern- ment issued $18.3 million in Treasury bonds with a threeyear maturity period, which was oversubscribed. Some brokerage firms said the pricing of the bond was key to the oversubscription. At $144, the bonds were sold one dollar below the par value, allowing primary buyers to profit when they sell them on the secondary market or hold them to maturity. “Trading below 100 per cent face value is a good investment,” said Celetin Rwabukumba, the CEO of the Rwanda Stock Exchange (RSE). Rwanda’s economy has re- covered from the slowing of GDP growth to 4.7 per cent in 2013, occasioned by donor aid cuts and bad weather. It is projected to grow by more than 6 per cent this year, driven by agriculture, services and industrial sectors. Analysts also attribute the growing investor confidence to the recent upgrade of Rwanda’s Fitch Ratings from B to B+. “To have this bond sub- scribed by 232 per cent with wide participation is a clear indication of how investors perceive our economy. Our aim is to ensure that we keep this trend goin ing our prude nomic policies, and Economic ister Claver Ga The Nation Rwanda recor scribers, up f ruary Treasur attracted 56 b from the RSE s at are least 1 holders on RS ity of whom a at 8,647, other at 2,299, and tors at 260. Central ba John Rwang “The initial g was announce which was la 11.875 per cent Additional bor Rwanda pla more on the market after issuance of the Eurobond, bu and the time set. The government used the money to retire two more expensive loans; one acquired to finance acquisition of planes for the national carrier RwandAir, and another for the construction of the Nyabarongo hydropower station, which upon completion will add 28 Megawatts to the national grid. PTA Bank was paid $60 million in respect of a loan for Rwandair, and $50 million borrowed for construction of Nyabarongo, which is set to be complete by the end of the year, was also repaid.
Aug 25th 2014
Sep 8th 2014