ENERGICOTEL (ECTL) PLC, a member of EPC Africa Group, an independent power producer and an engineering consulting company said in a statement that it had received regulatory approval to issue and list a Corporate Bond on the Rwanda Stock Exchange (RSE).

The corporate bond, the firm said, will be listed and traded on the Rwanda Stock Exchange (RSE) on July 26, after it received a nod from the Capital Market Authority (CMA).

"We are thrilled with the regulatory approval to issue and list our Corporate Bond on the Rwanda Stock Exchange (RSE) and to have made history as the first Independent Power Producer company in Rwanda to do so.” Ferdy Turasenga, Executive Director of ENERGICOTEL noted in a statement.

The approval means that the company will raise financing of Rwf6.5 billion to issue and list a corporate bond on the RSE.

It will become the third corporate bond to be listed since the establishment of the RSE after the ones by the International Finance Corporation (IFC) and local lender BCR—which was acquired by I&M bank.

The proceeds from the sale of corporate bonds, the firm said, will be used to refinance its existing bank loan, invest in operational power plants and settling bond issuance-related expenses among others.

"We are excited to continue on our trajectory of dynamic within the renewable energy space, with our core business of power generation and engineering consultancy,” Turasenga said.

Turasenga added that 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 firm’s transition to the development of sustainable renewable energy solutions.

The country’s electricity penetration stands at 63 per cent, with 47 per cent connected to the national grid and 16 per cent accessing electricity through off-grid.

However, the government targets that by 2024, there will be universal penetration with 52 per cent expected to be connected to the grid and 48 per cent through off-grid solutions.

Currently, ECTL operates 3 Hydro Power Plants namely: Keya, Nkora & Cyimbili in the Republic of Rwanda.

With a consistent capital outlay, now totaling to over FRw 4Billion, ENERGICOTEL "ECTL” PLC has transformed the Hydro Power Plants (HPPs) to a combined installed capacity of 3.2MW and has supplied 17M kWh of electricity to the national grid in 2020.

For more information, you can visit ENERGICOTEL website: www.energicotel.com.