The Frw 5 billion Medium-Term Senior Unsecured Bond marks a major milestone not only for AMS but also for Rwanda's healthcare and capital markets.
The approval paves the way for AMS to offer the bond to the public and subsequently list it on the Rwanda Stock Exchange (RSE), where trading is expected to commence on August 22.
The five-year bond, which carries a fixed annual interest rate of 13.25%, will be issued in a single tranche. It features an amortising structure with semi-annual interest payments and principal repayments starting 18 months after settlement. The bond's weighted average life is approximately 3.25 years. The minimum subscription is set at Frw 1 million.
Public subscription opens on July 24 and will run until August 7.
Founded in 2008, AMS supplies life-saving medical equipment, pharmaceuticals, laboratory reagents, diagnostic kits, and hospital furniture to over 400 clients, including public and private hospitals, NGOs, United Nations agencies, and government health programs across Rwanda and the Democratic Republic of the Congo (DRC).
Speaking on the development, Yves Sangano, Chairman of AMS, said the CMA approval is a significant step forward for both the company and the healthcare sector.
'Today marks a pivotal moment not just for AMS, but also for the healthcare sector because access to life-saving medical services remains out of reach for many,' said Sangano.
'Securing approval for the first-ever corporate bond any company in the healthcare sector in the country has issued is a conviction that the sector remains key in Rwanda's transformation journey.'
According to AMS, proceeds from the bond will be used to refinance USD-denominated debt and support growth plans aimed at increasing the company's capacity to fulfil contracts and expand into new markets. Frw 3.1 billion will go toward debt refinancing, while Frw 1.9 billion will fund working capital for growth.
Fabrice Shema Ngoga, the company's Chief Executive Officer and founder, said the bond is not just a financial instrument, but a statement of intent.
'This bond issuance will be a significant financial achievement for AMS, showcasing the strength of our business model and our commitment to responsible growth,' said Ngoga.
'Furthermore, this kind of financing allows us to directly connect with investors who share our vision for a future where every Rwandan has access to affordable healthcare.'
AMS has engaged BK Capital as the financial arranger and sponsoring broker for the issuance. RR Associates & Co. Advocates and BDO Rwanda are serving as legal and accounting advisors, respectively.
In 2024, AMS posted revenues of Frw 18.5 billion, with a net profit of Frw 681 million.
The firm holds a BBB- (RW) long-term rating and an A3 (RW) short-term rating from GCR Ratings, a Moody's subsidiary.
The company operates across Rwanda and the Democratic Republic of the Congo (DRC), with other target regions including Guinea-Conakry and the Central African Republic.
Wycliffe Nyamasege
