RMBhelpsBRDunlocktwomarket-firstmilestonesforRwanda'ssustainablefinancemarket

RMB acted as joint lead manager and sole sustainability co-ordinator to the Development Bank of Rwanda (BRD) on the issuance of a new RWF29 billion sustainability-linked bond tranche and the reopening of an existing RWF16 billion tranche.

The transactions mark two important milestones in the development of Rwanda's sustainable finance market. The new Series III bond introduced a 10-year tenor – the longest to date by a corporate issuer in Rwanda. The Series II reopening attracted participation from the African Local Currency Bond Fund (ALCB Fund) – bringing an international investor into a local-currency sustainable finance instrument.

The transactions build on BRD's pioneering sustainability-linked bond programme and RMB's long-standing support of the bank's sustainable finance ambitions. It also reinforced the role of capital markets in supporting Rwanda's socioeconomic development priorities.

The challenge

BRD sought to continue building its sustainability-linked bond programme while expanding its investor base and accessing longer-term funding aligned to its development mandate.

The bank required support across both transaction execution and sustainability structuring, including the enhancement of its Sustainability-Linked Bond Framework to reflect local priorities, evolving market standards and BRD’s strong performance achieved against its sustainability targets to date.

At the same time, BRD had long aimed to attract international institutional investors into its local-currency bond programme. However, concerns around currency depreciation had historically limited participation from international investors in Rwandan franc-denominated instruments. 

The transactions also required co-ordination across multiple stakeholders, including investors, regulators, development finance institutions (DFIs) and market participants, within tight execution timelines.

“BRD’s Medium Term Note Programme has evolved strongly, with each series attracting a growing and more diverse investor base, underscoring increasing market confidence. By consistently raising significant long-term funding in local currency, BRD has reduced reliance on foreign exchange exposed DFI financing. It also mitigated exchange rate risk, while extending maturities and establishing a benchmark that is catalysing broader corporate, financial, and non-sovereign issuances in Rwanda’s capital markets,” says Fernand Kamanzi, Director Strategy and Resource Mobilisation.

RMB’s solution

RMB acted as joint lead manager and sole sustainability co-ordinator on both transactions, supporting BRD in structuring and executing the issuances, co-ordinating stakeholders and engaging investors throughout the process.

For the Series III issuance, RMB helped structure and execute an oversubscribed RWF29 billion public offer that extended the tenor of BRD's sustainable finance programme to 10 years, setting a new benchmark for corporate bond tenors in Rwanda.

Series II reopening, RMB worked with BRD, the African Local Currency Bond (ALCB) Fund and The Currency Exchange Fund (TCX) to facilitate the participation of an international investor in a local-currency sustainable finance instrument. Through the implementation of a currency risk management solution, the transaction demonstrated how international capital can be mobilised into local-currency funding structures.

As sole sustainability co-ordinator, RMB also supported the enhancement of BRD's Sustainability-Linked Bond Framework. This included recalibrating sustainability performance targets to reflect progress achieved since the inaugural issuance, obtaining an updated Second Party Opinion and ensuring alignment with evolving market standards and local development priorities.

The transactions build on RMB's ongoing support of BRD's sustainability-linked bond programme, including the earlier issuances that established the world's first sustainability-linked bond issued by a sub-sovereign development finance institution.

Results and benefits

The transactions further expand BRD's access to capital while supporting its mandate to finance Rwanda's socioeconomic development priorities. 

The Series III issuance introduced Rwanda's longest-dated corporate bond tenor, providing access to longer-term funding and contributing to the continued development of local capital markets.

The Series II reopening broadened BRD's investor base beyond domestic investors and demonstrated the viability of attracting international institutional capital into local-currency sustainable finance instruments. 

Together, these transactions contribute to the continued development of sustainable finance in Rwanda and East Africa, building on BRD's role as a pioneer in the market and supporting the growth of innovative financing solutions aligned to development outcomes.

The transactions furthermore demonstrate RMB’s ability to combine capital markets and sustainable finance expertise to support pioneering transactions that broaden investor participation and expand access to long-term funding.

Client	Development Bank of Rwanda (BRD)
Deal value	Series III – RWF29 billion Series II reopening – RWF16 billion
Sector	Development Finance, Financial Services
Capabilities	Debt Capital Markets, Sustainable Finance, Public Sector
RMB's role	Joint Lead Manager and sole Sustainability Coordinator
Country	Rwanda