European investors on January 23 held discussions with Rwandan financial institutions to explore opportunities in the country’s green bond market, according to the Ministry of Finance and Economic Planning This is in line with efforts to boost the capital market while mobilizing sustainable green finance, as Rwanda continues to position itself as a regional financial hub and a leader in climate finance, pursuing ambitious climate goals. The delegation included leading European investment firms such as Amundi, AP2, as well as Crédit Agricole CIB - one of most active banks in the green bond market, along with other prominent entities at the forefront of sustainable finance. The discussions revolved around practical aspects of green bond issuance and investment, including market enabling conditions and challenges, ESG data requirements and standards, technical assistance through the EU Global Green Bond Initiative (GGBI), as well as local versus international market considerations. Yusuf Murangwa, the Minister of Finance and Economic Planning, said that sustainability is embedded in Rwanda’s development agenda Rwanda, as stated in Vision 2050 and the National Strategy for Transformation. He said: “We recognize that achieving these ambitious goals requires innovative financing mechanisms, such as green bonds, which are pivotal in addressing climate and sustainability challenges while fostering economic growth.” ALSO READ: CMA announces guidelines for bond issuance During the discussion, the Development Bank of Rwanda (BRD) and Rwanda Social Security Board (RSSB) presented their perspectives on green bond issuance and investment potential in the country. Over the past two years, BRD launched two tranches of Sustainability-Linked Bond which were both oversubscribed. Last November, Prime Energy Plc officially listed its inaugural green bond on Rwanda Stock Exchange (RSE), marking the start of the trading of the first-ever green bond in Rwanda. Belen Calvo Uyarra, the EU Ambassador to Rwanda, said the presence of major European investors in Kigali demonstrates the growing interest in Rwanda's sustainable and climate finance opportunities. “We're not just talking about potential. We are actively working to connect investors with opportunities, to make the most of EU Global Gateway, to deliver on our shared high level of ambition in the climate agenda. The European Union is leveraging its Global Green Bond Initiative (GGBI) to facilitate this market development. European investors have shared their investment criteria and approaches to green bonds in emerging markets, while international experts from Morningstar Sustainalytics and the Luxembourg Stock Exchange have provided insights on ESG ratings and listing requirements. Crédit Agricole CIB also shared its expertise as a leading underwriter of green bonds in emerging markets.
