This issuance offers investors a unique opportunity to participate in Rwanda's first-ever green bond, adding a new asset class for enhanced portfolio diversification. The bond is open for reoffering until 17 October 2024 and will be listed on the Rwanda Stock Exchange.
The green bond has undergone external verification by IBIS ESG Consulting Africa, which provided a Second Party Opinion (SPO) confirming that it meets the International Capital Market Association's (ICMA) updated Green, Social, and Sustainability Bond Principles issued in June 2021.
Speaking at the Prime Energy Investor Day held at the Rukarara Hydropower plant in Musanze District, Mr. Tsheole emphasized the significance of this milestone for Rwanda's capital market, particularly in offering alternative financing options. He praised Prime Energy for their pioneering role, stating, "I am proud of this milestone by Prime Energy, as it reflects our collective commitment to sustainable development."
The transaction was supported by the International Finance Corporation (IFC), part of the World Bank Group, which worked closely with Prime Energy to structure the green bond. The IFC's advisory support is part of a broader initiative to facilitate access to long-term local currency finance for key sectors in Rwanda.
CEO Tsheole also emphasized CMA's role in ensuring that Rwanda's capital markets function transparently and efficiently, while protecting investors by enforcing disclosure requirements.
'At CMA, we ensure that our capital markets operate efficiently and transparently, and we focus on protecting the interests of investors by ensuring the issuer complies with the requirements by making all the necessary disclosures to allow investors to make informed investment decisions. We are however taking a developmental approach to regulating capital markets,'' he said.
He further encouraged other sectors within Rwanda's economy to explore the potential of green bonds as a means of attracting investments into renewable energy, sustainable agriculture, and other climate-friendly initiatives.
Prime Energy currently operates four hydropower plants in Rwanda's Western, Southern, and Northern Provinces, under 25-year concession agreements with the Government of Rwanda, and power purchase agreements (PPAs) with Energy Utility Corporation Limited (EUCL).
IGIHE
Source : https://en.igihe.com/news/article/prime-energy-commended-for-issuing-rwanda-s-first-green-bond
