Pierre Celestin Rwabukumba, CEO of the RSE, applauded Prime Energy's bold move. 'Green bonds are new in our market in Rwanda, particularly from the SME sector. Prime Energy is pioneering this space, and their proceeds will be reinvested into greening the environment where they operate,' he said.
Highlighting a growing global trend, Rwabukumba remarked that investors are increasingly looking toward greener investments, and this bond is a testament to that shift. The bond's listing also opens opportunities for those who missed the primary issuance, as the bond is now tradable on the RSE's secondary market.
Rwabukumba emphasized the significance of this green bond within the context of Rwanda's broader financial landscape. In recent months, Rwanda has raised over 130 billion Rwandan francs, with local investors contributing more than 90% of the funding.
'It's something to be proud of. This is the first time in our market's history that we've seen multiple transactions of this scale and frequency, all oversubscribed and involving companies entering the market for the first time,' he said.
He viewed this green bond as part of Rwanda's effort to increase its capital market's share of the GDP, aiming to reach levels seen in countries like Botswana and South Africa, where stock market capitalizations surpass GDP.
Prime Energy's listing aligns with Rwanda's ambitious targets under the National Strategy for Transformation (NST2), which includes plans to double national savings rates within five years.
Rwabukumba believes capital markets will play an essential role in achieving this. 'This is something we have not been able to accomplish in decades through traditional banking alone,' he noted, underlining how capital markets provide 'patient capital' and long-term funds crucial for sustainable development.
Mutesi Linda Rusagara, Rwanda's Minister of State in Charge of Resource Mobilization and Public Investments also acknowledged Prime Energy's trailblazing efforts.
'Being a first mover is never easy, so I want to commend Prime Energy. You really could have chosen to seek more traditional financing but you chose to be bold. Today's bond has shown that the green and sustainable agenda unlocks new types of capital for the private sector,' she stated.
Rusagara emphasized the role of green bonds in attracting fresh capital to Rwanda, assuring the public of government commitment in reducing barriers to sustainable financing to encourage more initiatives such as these.
Grace Kibuthu Ogola, the Operations Officer for Capital Markets at the International Finance Corporation (IFC), celebrated the listing as a major milestone, attributing its success to Prime Energy's dedication to environmental responsibility and to all partners involved.
'The listing of this bond is a major milestone for Prime Energy. We are immensely proud of this success, having raised funds from global investors to support sustainable growth,' Ogola said.
She praised the green bond as an instrument that symbolizes Prime Energy's commitment to sustainability and accountability, which align with the United Nations Sustainable Development Goals (SDGs).
'Our environmental and social strategy aligns with IFC performance standards and specifically supports SDG 7 on affordable and clean energy, SDG 9 on industry, innovation, and infrastructure, and SDG 13 on climate action,' she explained.
To maintain transparency, Prime Energy has set up a dedicated Green Bond Committee to monitor the allocation of funds, promising an annual Green Bond Report on its website to ensure accountability to investors and stakeholders.
Looking forward, both the RSE and Prime Energy see this green bond as a cornerstone for Rwanda's sustainable financial future. It is seen as paving the way towards creating a greener and more sustainable future as this green bond is expected to inspire further eco-friendly financial ventures in Rwanda.
Prime Energy's green bond, Rwanda's first of its kind, reflects the nation's strong commitment to environmental stewardship and sustainable development. This landmark listing positions Rwanda as a leader in the regional green finance movement and sets a high standard for future sustainable investments.
Sam K Nkurunziza
