Rwanda's Prime Energy lists first green bond on bourse

Rwanda's Prime Energy Plc has created waves in the financial market by successfully raising 9.58 billion Rwandan francs in its inaugural green bond issuance, surpassing its initial target of 9.5 billion. The green bond has been listed on the Rwanda Stock Exchange, attracting significant interest from major investors, with the Rwanda Social Security Board (RSSB) emerging as the primary purchaser. CNBC Africa's Ericks Shyaka delved into the key developments with RSSB's Philippe Watrin, shedding light on the strategies behind the groundbreaking move. RSSB, being the largest investment fund in Rwanda, views it as its responsibility to bolster the development of financial markets. The organization has a track record of investing in other corporate bonds like Energic Hotel and BRD in the past, illustrating its commitment to fostering market growth. Philippe Watrin emphasized the importance of supporting Prime Energy's green bond issuance as a catalyst for future bond offerings, aiming to attract a diverse range of investors to ensure liquidity and market participation. Furthermore, he highlighted RSSB's dedication to environmental, social, and governance (ESG) factors, citing the institution's ESG report from the previous year as a testament to its focus on sustainable investments. The green bond's green energy generation and job creation in rural Rwanda resonated with RSSB's values, aligning well with the organization's investment ethos. Watrin acknowledged the rising prominence of green bonds as valuable investments in the financial landscape, likening them to a "green treasure" that RSSB actively seeks to support through its investment strategies. With a keen eye on aligning with the Rwandan government's vision for 2050, RSSB prioritizes sectors like energy generation to drive the country's industrialization efforts. By investing in projects like hydropower plants that contribute to clean energy production, RSSB aims to bolster initiatives that coincide with national development priorities. The organization remains open to supporting diverse sectors as long as they align with Rwanda's overarching goals, emphasizing collaboration to advance the nation's growth trajectory. Looking ahead, RSSB envisions a future where its investment portfolio plays a pivotal role in supporting Rwanda's industrialization drive. Through strategic investments in transformative industries such as agriculture and mining, RSSB aims to enhance the value chain of Rwandan products, propelling the country towards economic prosperity.