Horizon to issue commercial paper
Monday October 16 2017
Rwanda Stock Exchange CEO Celestin Rwabukumba. PHOTO | FILE | NATION
Horizon Group, a government enterprise, has been granted regulatory approval by the Rwanda Capital Markets Authority to issue the first ever commercial paper on Rwanda’s bourse.
The company seeks to raise $6 million, part of which will be used to settle a bank debt that is accumulating interest.
The commercial paper is hoped to simplify Horizons planned issuance of a corporate bond equity security in the near future.
“The success of the commercial paper will do a lot of marketing for the group, which should lead to issuance of corporate bond and then issuance of equity security,” a source told The EastAfrican.
Diverse portfolio
Horizon owns three subsidiaries namely Horizon Construction, Horizon Sopyrwa, a company which produces, processes and exports pyrethrum and its products, and Horizon Logistics. The diversified business portfolio could generate interest in the commercial paper.
Market players hope Horizon’s short term instrument will interest other companies in Rwanda to issue commercial papers.
“If this commercial paper goes through it will be excellent. We operate in a market that believes in pioneers. The success of the pioneers draws a lot of admiration,” said Celestin Rwabukumba, CEO of the Rwanda Stock Exchange.
Many Rwandans still depend on bank credit for capital and short-term funding.