The Development Bank of Rwanda (BRD) PLC has initiated the issuance of its inaugural sustainability-linked bond on the Kigali Stock Exchange. This historic bond issuance, a first for a national development bank worldwide, seeks to raise an impressive Rwf30 billion (approximately $24.8 million) dedicated to supporting the bank’s environmental, social, and governance (ESG) programs in partnership with other lenders.
The seven-year maturity bond represents the first step in a larger strategy aimed at securing a total of Rwf150 billion (equivalent to $124 million) in the medium term. The bond’s proceeds will be directed towards expanding loans extended by BRD and its affiliated financial institutions, particularly to businesses led by women and the financing of affordable housing projects.
Kampeta Pitchette Sayinzoga, the CEO of BRD, emphasized that this innovative bond issuance signifies the bank’s commitment to diversifying its sources of development finance by tapping into the local capital market. The move underscores Rwanda’s dedication to sustainable economic development.
One of the notable aspects of this historic bond issuance is its alignment with sustainability goals. The bond incorporates sustainability-linked features that bind BRD to meet specific performance indicators aligned with Rwanda’s sustainable economic development objectives. This groundbreaking approach further solidifies BRD’s role in driving sustainability within the country.
The bond, which was listed on the Rwanda Stock Exchange, is slated to close on October 13, 2023. Investors and financial stakeholders around the world are closely watching this unprecedented move by BRD, as it could set a precedent for other national development banks globally and pave the way for similar initiatives in the region.
Rwanda, supported by a recent $100 million financing injection from the World Bank’s International Development Association (IDA), is taking significant strides in bolstering access to finance, supporting business recovery, and building resilience in the post-pandemic era. This move signifies a groundbreaking milestone in the ongoing journey toward a more sustainable and economically robust Rwanda.
Photo Source: Dan Nsengiyumva
October 3, 2023
Delino Gayweh
Serrari Financial Analyst
