By JAMES ANYANZWA

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Prime Energy Plc, a renewable energy independent power producer in Rwanda, has received approval from the Capital Markets Authority to issue the first-ever green bond in the country.

In a statement on Wednesday, the utility said the approval allows it to take steps toward offering the green bond to the public and listing on the Rwanda Stock Exchange (RSE).

“The Capital Markets Authority of Rwanda is pleased to have approved Prime Energy’s issuance of the first green bond in the Rwandan market,” said Eric Bundugu, Rwanda Capital Markets Authority CEO.

“This bond marks another milestone on diversification of asset classes while deepening the Rwanda capital market. This landmark achievement reflects a significant step forward in ensuring our domestic capital market continues to support Rwanda’s commitment towards sustainable finance development.”

Read: Rwanda bank seeks diversity, floats first sustainability bond

The firm is seeking to raise Rwf9.5 billion ($7.31 million) through the seven-year bond, whose proceeds will be invested in a new project and help finance the maintenance of existing plants.

The offer opens on March 18 and closes April 5 and the bond will be listed and start trading on the RSE on April 26.

“Today marks a pivotal moment for Prime Energy and the Rwanda capital markets. Securing approval for the first-ever green bond in the country provides us with alternative options of financing through capital markets,” said Sandy Rusera, Prime Energy’s CEO.

“The proceeds will allow us to accelerate our hydropower capacity and explore new opportunities to bring sustainable energy to more communities.”

The transaction was supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which worked with Prime Energy to structure the bond and identify potential investors.

IFC’s advisory support is part of a broader project which is helping to facilitate access to long-term local currency finance in Rwanda for key sectors.

Prime Energy operates four hydropower plants located in the Western, Southern and Northern Provinces of Rwanda with 25-year concession agreements with the government of Rwanda and power purchase agreements with Energy Utility Corporations Ltd.

The bond offers investors the opportunity to align investment with environmental sustainability, and governance, mitigate risks and access a new asset class for diversification.