The Development Bank of Rwanda inaugural bond oversubscribed

Kigali, 23^rd October 2023 – The Development Bank of Rwanda (“BRD” or the “Bank”) has achieved a notable oversubscription of FRW 33.17 billion from its Sustainability Linked Bond (SLB), achieving a remarkable subscription rate of 110.59% through a public offer made available FRW30 billion in its inaugural bond which is the first tranche of the bank’s FRW150 billion Medium Term Note (MTN) program. 

This bond offer, which was launched on the 29th of September 2023 for a period of two weeks, with a minimum subscription threshold of FRW100,000 which comes with a seven-year maturity period at an annual coupon rate of 12.85%. The bulk of the bond subscriptions were made by banks and pension scheme funds, accounting for 64% of the issuance, with retail and other institutional investors covering the remaining portion.

With the primary market now closed, bond buyers can now access bonds through the Rwanda Stock Exchange through the authorised brokers, allowing those who initially missed the opportunity in the primary market to participate.

The Sustainability Linked Bond, which is a first of its kind regionally and globally by a national development bank supports BRD’s commitment to mainstreaming environmental, social, and governance (ESG) for partner financial institutions, increasing women-led business loans, and financing affordable housing. The success of this inaugural bond issuance gives BRD the confidence to start relying on capital markets to raise financing for its growth agenda.

Kampeta Sayinzoga, BRD CEO, expressed the bank’s deep appreciation, stating, “we would like to extend our sincere appreciation to all those who participated and supported this special issuance, it encourages us at BRD to keep finding innovative ways to raise financing for our national development agenda”.

This remarkable SLB is partially secured by the World Bank’s lending operation to the Government of Rwanda through the Access to Finance for Economic Recovery and Resilience Project (AFIRR). Following the approval from the Rwandan Capital Market Authority and successful primary offer, BRD’s inaugural SLB will be listed and traded on the Rwanda Stock Exchange starting Friday 27th October 2023, marking a significant milestone in the bank’s journey towards sustainable development financing.