Rwanda's development bank issues $25m sustainability bond

AFRICAN STOCKS AND FINANCEOctober 2, 2023 at 1:44 PM UTC

The Development Bank of Rwanda (BRD) has initiated a public offer for its debut Sustainability-Linked Bond (SLB), valued at Rwf 30 billion, starting on September 29th. This SLB benefits from partial credit enhancement via a World Bank lending operation under the Access to Finance for Economic Recovery and Resilience Project (AFIRR), supporting the Rwandan government.

With a maturity period of seven years and a target of $24.8 million (Rwf 30 billion), this issuance is the first within a larger $124 million (Rwf 150 billion) Medium Term Note Programme. The bond's offering period will conclude on October 13th, following which it will be listed and traded on the Rwanda Stock Exchange.

The SLB's primary purpose is to raise funds that will aid BRD in integrating environmental, social, and governance (ESG) criteria into its operations with partner financial institutions. It will also support the financing of women-led businesses and affordable housing initiatives, aligning with the bank's commitment to sustainable development.

Key Takeaways

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