Prime Energy Plc has listed its inaugural green bond on the Rwanda Stock Exchange (RSE), also a first for the country, The New Times reports.

The Kigali-based company focuses on the development, operation, and management of hydropower plants, the construction of green-field power plants, and transmission lines and substations in Africa.

It raised RWF9.58bn ($6.97mn), slightly above its initial target of RWF9.5bn.

The bond was issued in two tranches – a Rwandan franc tranche and US dollar tranche, both priced at 13.75% and 9.5% per annum, respectively. It has a seven-year tenor and will be paid semi-annually.

“The Green Bond we are listing today is not merely a financing instrument. It represents our commitment to transparency in our operations, environmental stewardship, strong returns for investors, and contributing to Rwanda's economic development,” Cherno Gaye, Chairman of Prime Energy, remarked.

“This is a significant step in our journey to not only support the government’s goals of clean energy and climate action but also to pave the way for a more sustainable and green future for Rwanda,” he added.

According to The New Times, the oversubscribed bond attracted investors such as the Rwanda Social Security Board (RSSB), Agaciro Development Fund (ADF), Bank of Kigali (BK), and Rwanda National investment Trust (RNIT), among others.

Minister of State in Charge of Public Investment and Resource Mobilization, Linda Mutesi Rusagara, commended Prime Energy for issuing Rwanda’s first green bond, stepping away from traditional financing methods.

“You really could have chosen to seek more traditional financing and go knocking on the doors of banks, but you really chose to be bold,” she is quoted as saying, calling it a critical step in Rwanda’s broader push towards a green economy, encouraging public and private sectors to continue advancing green financing efforts.

Prime Energy plans to use the funds to finance its renewable energy projects aimed at increasing access to affordable electricity in Rwanda while supporting sustainable development.