Rwandan company Prime Energy PLC, a relatively unknown local renewable independent power producer until last year, has raised around Rwf9.58 billion with its first-ever green bond.
Initially, the company aimed to secure at least Rwf9.5 billion when it announced this issuance in March. However, the acceptance of an additional Rwf80 million reflects modest but strong investor interest.
As a medium-sized company still establishing itself in an industry dominated by large players, Prime Energy currently operates only four mini hydropower plants with a combined capacity of 7.8 megawatts.
Despite its smaller scale, investors believe in the company’s potential for substantial returns. They are less concerned about Prime’s current size than its future prospects, which appear promising. The company has assured investors that their funds will be responsibly utilized to meet green obligations, including reducing its carbon footprint and adhering to internationally recognized environmental, social, and governance (ESG) standards.
Prime Energy is not alone in this endeavor. Its bond issuance follows just two months after the Development Bank of Rwanda (BRD) returned to the market to raise Rwf30 billion through a sustainability-linked bond, a repeat of a similar amount raised locally last year.
These actions suggest growing investor interest in the local market, particularly among those who prioritize the social, environmental, and governance impact of their investments. Investors are looking for companies that are inclusive, gender diverse, and committed to employee support, such as mental health resources.
Clearly, green financing resources are abundant, yet companies must adapt and position themselves strategically to attract this type of funding. While concerns about “greenwashing”—the overstatement of environmental commitments—exist, increasing regulations are being implemented to prevent it. Companies are tasked with aligning their objectives with investor expectations, which ultimately serves their best interests.
