Mahwi Grain Millers Lists $3.7M Bond on Rwanda Stock Exchange
TLDR
- Rwandan grain processing company, Mahwi Grain Millers, lists first corporate bond worth Rwf5 billion on Rwanda Stock Exchange (RSE)
- Bond issuance approved by Capital Markets Authority, announced on August 9, closed on August 23, now tradable on secondary market
- First tranche of Rwf3 billion offers 15% fixed interest rate per annum over five years, second tranche of Rwf2 billion to be issued later
Mahwi Grain Millers, a Rwandan grain processing company, listed its first corporate bond worth Rwf5 billion (around $3.7 million) on the Rwanda Stock Exchange (RSE) on September 2.
The bond issuance, approved by the Capital Markets Authority, was announced on August 9 and closed on August 23. The bond will now be traded on the secondary market, allowing initial buyers to sell portions of their investment to other parties.
The bond issuance is divided into two tranches. The first tranche, worth Rwf3 billion, has a five-year tenor and offers a fixed interest rate of 15% per annum, payable semi-annually. The second tranche, worth Rwf2 billion, will be issued later with a tenor to be determined.
Key Takeaways
Mahwi Grain Millers' corporate bond listing on the RSE marks a significant achievement for the company and Rwanda's capital market. This is the second company to graduate from the RSE Investment Clinic and the first in agro-processing to list on the stock market, demonstrating that even small and medium enterprises (SMEs) can raise capital through the stock exchange. The funds raised will enable Mahwi Grain Millers to expand its operations, including establishing an animal feed production plant by early 2025. The company’s success sets a precedent for other SMEs in Rwanda, highlighting the potential for businesses to access funding through capital markets, regardless of their size or sector.
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