Prime Energy Raises Over FRW 9,500,000,000 Through Inaugural Green Bond

Prime Energy Plc (“Prime Energy”), Rwanda’s renewable energy powerhouse, today announced it has successfully raised FRW 9,580,000,000 through its inaugural green bond issuance from both Institutional and Retail investors under its Green Finance Framework, against a target size of FRW 9.50 billion. The announcement comes months after the company embarked on the journey to issue Rwanda’s first-ever green bond.

The bond is FRW 9.5 billion with a seven-year tenor issued in two tranches – the FRW tranche and USD linked tranche. The FRW tranche has an interest rate of 13.75% per annum payable semi-annually while the USD tranche has an interest rate of 9.5% per annum payable semi-annually.

79% of the FRW 9.5 billion bond issuance proceeds will be deployed to fund construction of a Rukarara VI with the rest set aside to finance the maintenance of existing hydro power plants, as the company pursues plans to expand its energy production capacity.

Sandy Rusera, Chief Executive Officer of Prime Energy, said: “Our first green bond issuance for FRW 9.5 billion underscores investor confidence in Prime Energy’s financial robustness and its sustainability credentials. The funds will be crucial in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an energy transition by increasing energy access in Rwanda.”

Joe Nsano, Chief Operating Officer of Prime Energy, said: “As we have committed under our Green Finance Framework, we are raising a green bond to invest in a new greenfield project. This is an important component of our investor relations story, but it is also a way to express our conviction that this will lead to positive environmental impacts by supporting clean energy in Rwanda and advancing the UN Sustainable Development Goals, specifically SDGs 7, 9 and 13. 

The Financial arrangers & sponsoring brokers on the issuance were BK Capital, a subsidiary of BK Group, and AIS Capital Advisors. 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. This transaction was supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which worked with Prime Energy to structure the green bond. IFC’s advisory support is part of a broader project which is helping to facilitate access to long-term local currency finance in Rwanda for key sectors.

Since its establishment in 2014, Prime Energy has been a key player in Rwanda’s energy sector. The company has developed and partnered with the Government of Rwanda proj Sects aimed to increase its renewable energy portfolio capacity and expand access to energy in Rwanda.

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