The Rwanda Stock Exchange (RSE) on Monday,9th August 2021started trading the first ever corporate bond issued by a private energy investor Energicotel ‘ECTL’ PLC, an Independent Power Producer (IPP) and an Engineering Consulting Firm.
At the colorful Bell Ringing ceremony at the Kigali Marriot Hotel, the Minister of Infrastructure, Honorable Amb. Claver Gatete presided over the launch of the listing and trading of First Tranche of the Frw 6,500,000,000 Long-term Fixed Rate Corporate Bond amounting to Frw 3,500,000,000.
The first tranche proceeds have been earmarked for refinancing the existing bank loan, investment into operational power plants and bond issuance related expenses.
Investors can expect a good return on investment since Energicotel PLC has committed a 13.5% fixed interest rate on the FRw 3,500,000,000 Tranche, which received 100% subscription a fortnight ago.
“Moving to the capital markets is an essential step towards showcasing additional avenues for capital formation and providing a platform for investors to participate in the Energicotel investment plans. We are excited to continue on our growth trajectory within the renewable energy space, with our core business of power generation and engineering consultancy” said Mr. Ferdy Turasenga, the Executive Director of Energicotel PLC.
“The successful subscription of the Frw 3.5 billon 1st tranche of Energicotel’s Long-Term Bond Programme exhibits investors continued growing appetite for more and diverse products in our capital markets industry. It also provides a great opportunity for investors to be part of Energicotel’s continued success,” said Mr. Eric BUNDUGU, the Ag. Executive Director of Capital Market Authority.
"Access to Finance Rwanda is honored to be part of this journey and as we celebrate this milestone, we hope this project bond will mark the path for use of capital market as a financing platform for SMEs in need of capital so as to increase their productivity, create more meaningful jobs and contribute to Rwanda’s socio-economic transformation” said Mr. Jean Bosco Iyacu, the Chief Executive Officer of Access to Finance Rwanda.
“The decision for Energicotel PLC to use our young bourse is yet another vote of confidence in our market’s ability to mobilize resources especially during the current crisis the world economy is going through. By listing Energicotel PLC, we are increasing our menu and diversification for investors in the market. The fact that the company is one of the leading IPPs in Rwanda is an added value since they are heavily involved in the renewable energy. Thus, it gives us a few additional points in saving the planet and complying with the UN’s SDGs and ESGs talking of sustainable and or green finance would not very far from happening in our market,” said Mr. Pierre Celestin Rwabukumba, the Chief Executive Officer of Rwanda Stock Exchange.