Green Bond

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.