Green Bond
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A green bond is a debt security issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate. Green bonds help mitigate climate change-related risks in the portfolio due to changing policies.
Prime Energy Plc is issuing a green bond to support the company’s existing operations and facilitate efforts aimed at scaling its work towards providing alternative clean energy solutions. The issue will see the company secure the needed funds for sustainability-related capital projects. The bond proceeds will finance business expansion through development of 10MW run-of-river Rukarara VI Project and maintain assets in operation i.e. four run-of-river hydro power plants totaling 8MW.
A Green Bond Framework has been developed whose primary objective is to guide in financing projects and initiatives that have a positive environmental impact. By setting clear criteria for eligible green projects, the framework ensures that the issued bond contributes to environmental sustainability and climate change mitigation.
The Framework will set out the governing guidelines and principles for issuing green bonds at Prime Energy Plc’s level. It reflects the company’s strong commitment to advance sustainable finance agenda and establish itself as a leading example in Rwanda’s energy sector. The Framework has been developed based on international standards and best practices. The Green Bond Framework has been developed in line with the four key pillars of the Green Bond Principles (GBP) established by the International Capital Markets Association (ICMA) as below:
- Use of Proceeds
- Process for Project Evaluation and Selection
- Management of Proceeds
- Reporting and Verification
The Green Bond framework has been independently reviewed and verified by a second party.
Prime Energy Plc’s FRW 9.5 billion Green Bond is the first of its kind in Rwanda.
Terms and Conditions of the Bond
Nominal amount: FRW 9,500,000,000
Tenor: 7 years
Coupon Rate –
- FRW Tranche: Interest rate of 13.75% per annum payable semi-annually
- USD Linked Tranche: Interest rate of 9.5% per annum payable semi-annually
Subscription deadline: 17th Oct 2024
Minimum subscription amount: FRW 100,000,000
Application Process
- Central Securities Depository Account – You need to open a Central Securities Depository (CSD) Account (Investment Account) with the National Bank of Rwanda (NBR) through a local licensed broker or custodian.
- Certificate of incorporation – Provide a notarized copy of the certificate of incorporation.
- Constitutional documents – Provide a notarized copy of constitutional documents.
Authorised signatories:
- Provide a notarized copy of valid ID or Passport data pages for the authorized signatories.
- Provide a board resolution that includes the appointment of the signatories.
- Provide a copy of colored photographs of the authorized signatories.
- Central Securities Depository Account – You need to open a Central Securities Depository (CSD) Account (Investment Account) with the National Bank of Rwanda (NBR) through a local licensed broker or custodian.
- Application form – Complete the ‘Prime Energy Plc Note Subscription Form’ that can be accessed from your licensed broker.
- Identification documents – Provide a notarized copy of a valid ID or Passport page.
Licensed Brokers
Name and Address | Contact Information | Contact Person |
---|---|---|
BK Capital Limited BK Head Office P.O Box 175, Kigali Rwanda | Tel: +250 788 143 241/+250 781 449 631 Email: bkcapital@bk.rw/ s.kisoso@bk.rw Call Centre: 4455 Website: www.bkcapital.rw | Mr. Siongo Kisoso |
FAIDA Securities Rwanda Centenary House 4th floor P. O. Box 124 Kigali, Rwanda | Tel: +250784333734/+250782859330 Email: stephen.njoroge@fib.co.ke Website: www.fib.co.ke | Mr. Njoroge Stephen |
African Alliance Rwanda Securities Limited. KN 41 St Kiyovu - Nyarugenge, 1st Floor P. O. Box 7179, Kigali – Rwanda | Tel: +250785694490 Email: securitiesrw@africanalliance.com Website: www.africanalliance.com | Mr. Kenneth Kitariko |
Baraka Capital Limited 4th Floor - Building 2000 P. O. Box 7180, Kigali – Rwanda | Tel: +250280381100/+250255120337 Email: baraka@barakacapital.com | Mr. Gathaara Davis |
CDH Capital Limited 9th Floor, Ecobank Building P. O. Box 6237 Kigali Rwanda | Tel: +250788304274/+250788301007 Email: shehzadnoordally@cdhcapitalltd.org Website: www.cdhcapitalltd.org | Mr. Shehzad Noordally |
Mo Capital Limited Kigali City Towers 1st Floor P. O. Box 3360 Kigali-Rwanda | Tel: +250788750569 Email: o-muneza@mocapital.co.rw/ info@mocapital.co.rw Website: www.mocapital.co.rw | Mr. Muneza Olivier |
MBEA Brokerage Services Limited. Regus Offices. Kigali City Towers (KCT), 14th floor P. O. Box 3492 Kigali, Rwanda | Tel: +250788803371 / +250788 803370 Email: info@mbea.net Website: www.mbea.net / www.mbeagroup.net | Mr. Owiny Otengo Andrew |