Prime Energy PLC, a local renewable independent power producer that was until last year less known, has raised some Rwf9.58 billion through its inaugural green bond.

The company had targeted to raise at least Rwf9.5 billion when it first announced its issuance in March this year. But an acceptance of an additional Rwf80 million means that investors have modestly expressed great appetite.

Prime Energy is just a medium-sized company that is still finding its footing in an industry that is usually dominated by large players. The company operates barely four mini hydropower plants with a combined installed capacity of 7.8 megawatts.

Yet, investors still see fit that this company has potential to generate greater returns. No investor cares about the size of the company, they care about their future potential. Prime has proven that their future prospects are bright.

They have convinced investors that they will put their money to good use by honoring their green obligations, including reducing their carbon footprint by running their business in line with the internationally recognized environmental, social, and governance (ESG) principles.

But they are not alone. Their issuance comes barely two months since the Development Bank of Rwanda (BRD) had returned to the market to raise Rwf30 billion through their sustainability linked bond.

Last year, BRD had raised the same amount on the local market.

This arguably proves that investor appetite on the domestic market has been growing, but these investors want to invest consciously because they care about the impact of their investments on society, the environment, and how the companies they invest in are governed – are they inclusive? are they gender diverse? Or do they empower their employees with necessary resources such as mental health support?

Clearly, these developments prove that resources, in particular, green financing is in abundance. But companies need to reinvent themselves and position themselves strategically to attract this kind of funding.

There are concerns of greenwashing – where companies overstate their green objectives to please investors – but strict rules are increasingly being put in place. It’s up to companies to choose what’s in their best interest, and what’s in their best interest is aligning their objectives with investors desires.