The Development Bank of Rwanda, in collaboration with the World Bank, has launched the second tranche of its Sustainability-Linked Bond under its Rwf150 billion Medium Term Note Program, aiming to raise an additional Rwf30 billion.
This follows the success of the first tranche, which achieved an oversubscription rate of 110.59 percent, demonstrating strong investor demand for Rwanda’s debut ESG-focused debt issuance.
Similar to the first tranche, this new issuance will focus on supporting women-led businesses and expanding access to affordable housing. The bond is designed to align with environmental, social, and governance (ESG) principles, allowing BRD to diversify its funding base while promoting sustainable economic growth. The proceeds will also contribute to the development of Rwanda’s capital markets by attracting more investors to impact-driven opportunities.
The terms for this second tranche include a nominal series amount of Rwf30 billion, with a 7-year tenor and an interest rate of 12.90 percent. The minimum subscription is set at Rwf100,000, and the subscription deadline is September 20th, 2024.
BRD’s ongoing bond program, supported by the World Bank, is part of a broader strategy to foster sustainability within Rwanda’s financial sector. By leveraging capital markets, the bank aims to empower underserved sectors and catalyze growth in key areas such as affordable housing and female entrepreneurship.
The success of the first tranche has set a strong precedent for the second issuance, as investors increasingly look for sustainable investments that offer both financial returns and positive social impact. This latest tranche is expected to attract significant interest, reinforcing Rwanda’s position as a growing player in the ESG financing landscape.
