Kenya’s President Uhuru Kenyatta at the London Stock Exchange. The country’s $40 million debut green bond received a lukewarm reception. PHOTO | FILE | NATION MEDIA GROUP

Kenya and Rwanda are hoping to expose the East Africa region to sophisticated foreign investors after floating two bonds on the London Stocks Exchange (LSE) last week.

However, Kenya’s $40 million debut green bond received a lukewarm reception with no trading recorded in the first week.

While the cross-listing of the bond was intended to expose investors to a deep market that is significantly liquid, the issue has failed to generate interest from investors with LSE market statistics reflecting zero trading.

Trading of the bond by Nairobi-based property developer Acorn Holdings has been flat in the secondary market.

The World Bank floated a $40 million Rwandan Franc bond that offers investors an annual coupon of 9.25 percent payable in US dollars when it matures in 2023.

The World Bank intends to raise funds to invest in government bonds issued in the local market.

Source: The East African

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