The Chief Executive Officer of the Capital Market Authority (CMA), Mr. Thapelo Tsheole commends Prime Energy Plc for issuing their 7-year green bond with a face value of FRW 9.5 billion. The proceeds from the Green Bond will go into investing in Rukarara VI Hydro power plant, a renewable greenfield project.
This issuance presents investors with a unique opportunity to participate in Rwanda's first-ever green bond, providing access to a new asset class for enhanced diversification. The reoffering will close on 17 October 2024 and will be listed on the Rwanda Stock Exchange.
The Green Bond being issued has been externally verified as “Green Bonds”, based on a Second Party Opinion (SPO) by IBIS ESG Consulting Africa that confirms alignment with the four core components of the updated International Capital Market Association (ICMA) Green, Social and Sustainability Bond Principles issued in June 2021 respectively.
CEO Thapelo Tsheole of CMA speaking at the Prime Energy Investor Day in the Northern Province in Musanze District at the Rukarara Hydropower plant commends Prime Energy for issuing Rwanda’s first green bond, which demonstrates the significant impact of the capital market in offering alternative financing options for those in business.
He said ‘‘I am proud of this milestone by Prime Energy, as it reflects our collective commitment to sustainable development. At CMA we are dedicated to always support businesses flourish by making profits but also having a positive impact on the environment.’’
This transaction was supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which worked with Prime Energy to structure the green bond. IFC’s advisory support is part of a broader project which is helping to facilitate access to long-term local currency finance in Rwanda for key sectors.
CEO Thapelo stressed that ‘‘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.’’
Thapelo urged different players in Rwanda’s economy to consider green bonds to attract investments in renewable energy, sustainable agriculture, and other initiatives that address climate change and promote sustainability.
Prime Energy operates four hydropower plants located in the Western, Southern and Northern Provinces of Rwanda with 25-year concession agreements with the Government of Rwanda and power purchase agreements (PPAs) with Energy Utility Corporation Limited (EUCL).