RMB supports BRD's sustainability linked bond

Media Release

17 October 2024

RMB acts as Joint Lead Manager and Sustainability Coordinator for Development Bank of Rwanda’s second Sustainability-Linked Bond issuance

RMB acted as Joint Lead Manager (alongside BK Capital Limited and supported by Bankers Without Boundaries) and sole Sustainability Coordinator for the successful issuance of the Development Bank of Rwanda Plc’s (“BRD”) second tranche (“Series II”) Sustainability Linked Bond (“SLB”) under its FRw 150 billion Medium Term Note Programme. The Series II SLB is also partially credit-enhanced by a World Bank lending operation to the Government of Rwanda. 

This Series II capital raise built on the momentum of BRD’s landmark SLB issuance in October 2023, evidenced by subscriptions of FRw 39.05 billion from both resident and non-resident investors, against a target size of FRw 30 billion, cementing BRD as a regional leader in both Sustainability and Debt Capital Markets.

The successful second issuance leverages BRD’s Sustainability-Linked Bond Framework (“SLBF” or “Framework”) established in 2023 to programmatically access both the local and international market in a structure that is standardized and that links BRD’s funding and sustainability strategies. The Framework, developed with the support of RMB has enabled BRD to strategically diversify its funding sources from concessional to market-based, raising over FRw 63 billion in a sustainable way.

“RMB’s expertise in structuring innovative sustainable finance solutions has enabled us to support BRD in executing its sustainability agenda through the successful completion of the bond issuance. This transaction highlights our commitment to driving sustainable economic development in the region by leveraging our deep market knowledge and advisory capabilities,” says Kwasi Kwarteng, Head of Public Sector & International Capital Markets at RMB.

"BRD's successful issuance of its Series II Sustainability-Linked Bond (SLB) through the capital markets highlights both the innovation and significant growth within Rwanda's financial landscape. This SLB issuance aligns with the Capital Market Authority of Rwanda's ten-year Capital Market Master Plan (CMMP), aimed at deepening the debt market and expanding listings on the Rwanda Stock Exchange." Says Siongo Kisoso, Managing Director at BK Capital Ltd.

The strong investor support for Series II, demonstrated through subscription levels at 130%, has provided BRD with the confidence to continue accessing the capital markets to diversify its funding sources and raise innovative financing for its growth agenda.

“BRD is making progress towards reaching their 2028 sustainability performance targets relating to access to finance for women-led SMEs, affordable housing and implementation of an environmental and social management system (ESMS) across financial sector participants in Rwanda. This is compelling evidence of BRD’s commitment to Rwanda’s sustainable economic development objectives, and this commitment is supported by investors as demonstrated by the strong levels of oversubscription,” concludes Beth Rivett-Carnac, Sustainable Finance at RMB.

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