Prime Energy Plc, a renewable energy independent power producer in Rwanda, has announced the reopening of their 7-year Green bond offer from September 26 to October 17 2024. The green bond offer was initially opened to the public in March this year before pausing. It wasn’t clear why the company briefly halted the offer. A green bond is a debt instrument used to mobilise resources and whose proceeds are exclusively used to finance projects that have a positive environmental impact, such as renewable energy and green buildings. The first-ever green bond in Rwanda, worth Rwf9.5 billion, features two tranches; the Rwandan franc and United States Dollar (USD) linked tranche. The Rwandan Franc tranche has an interest rate of 13.75 per cent per annum, while the USD Tranche has an interest rate of 9.5 per cent per annum, both payable semi-annually. ALSO READ: Prime Energy announces first-ever Green Bond issuance in Rwanda In a press statement, Prime Energy said that the bond has been externally verified. “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,” reads part of the statement. The 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. According to the company, proceeds from the bond will go into investing in Rukarara VI Hydro power plant, a renewable greenfield project, while the rest will finance the maintenance of existing plants. ALSO READ: Rwanda raises $100m funding towards green development 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). The green bond comes soon after the launch of the second Sustainability Linked Bond (SLB) worth Rwf30 billion issued by the Development Bank of Rwanda (BRD) in August 2024. The reoffering is set to list on the Rwanda Stock Exchange on October 31.
