Kigali, August 23, 2024 – The Development Bank of Rwanda (BRD) is proud to announce the launch of its second Sustainability-Linked Bond (SLB), continuing its efforts to promote sustainable financing in Rwanda. This initiative aligns with global trends towards responsible investment and sustainable development, reinforcing BRD’s commitment to environmental protection and economic growth.
This second bond issuance will raise Rwf 30 billion, with an additional option to issue up to additional Rwf5 billion. It is part of BRD’s broader Rwf150 billion Medium Term Note (MTN) programme. The Rwanda Capital Market Authority has approved this issuance, highlighting the strong regulatory support for innovative financial instruments that promote sustainability.
Building on the success of BRD’s first SLB, this second issuance will further strengthen the bank’s focus on environmental, social, and governance (ESG) initiatives. It will also improve access to capital for key sectors such as women-led businesses and affordable housing. By tying the bond’s performance metrics to specific sustainability targets, BRD is setting a new standard for responsible investment and positive societal impact. The first SLB, issued last year, was oversubscribed by 110.59%, raising Rwf30 billion. This success has given BRD the confidence to continue using capital markets to fund its growth initiatives.
"By issuing our second sustainability-linked bond, we reaffirm our commitment to incentivizing borrowers to set meaningful sustainability targets while maintaining the innovative step-down coupon from the first tranche,” said Kampeta Sayinzoga, CEO of BRD. "Investors are increasingly looking for opportunities that offer both financial returns and positive societal impact. With this SLB, BRD aims to attract responsible investors who share the principles of sustainable finance.”
Like the first issuance, this bond is part of the World Bank’s lending operation to the Government of Rwanda through Hatana-ERF2. The bond structure includes a partial credit enhancement, and it comes with a 7-year tenor. The offer will open on September 2, 2024, and close on September 20, 2024, with a minimum subscription of Rwf100,000. Investors are encouraged to take part in this unique opportunity that promises both financial returns and positive environmental and social outcomes.
Once the offer opens, the Prospectus and Pricing Supplement will be available for download on BRD’s website: https://www.brd.rw. Hard copies may be requested or obtained free of charge at BRD’s offices.
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About BRD plc:
The Development Bank of Rwanda (BRD) is Rwanda's foremost development finance institution, dedicated to supporting the country’s socio-economic development by providing long-term financing to key sectors of the economy. Established in 1967, BRD has been instrumental in financing projects that drive Rwanda’s growth, particularly in infrastructure, agriculture, affordable housing, and export sectors. BRD is committed to sustainable development and continues to innovate in providing financial solutions that support Rwanda’s Vision 2050.
For media inquiries, please contact:
Keith NTAGOZERA, BRD Marketing Officer
Phone: +250 788 298 896
Email: k.ntagozera@brd.rw