With its debut bond issuance, Africa Medical Supplier (AMS) PLC offers investors an attractive return while becoming the first healthcare company to tap into Rwanda’s capital market, experts have observed. The company, one of the leading suppliers and distributors of medical products in Rwanda, announced the issuance of a corporate bond worth Rwf5 billion on July 21, following approval from the Rwanda Capital Market Authority (CMA). ALSO READ: Africa Medical Supplier announces Rwf5bn inaugural bond The five-year bond will be open for public subscription from July 24 to August 7, ahead of its listing and commencement of trading on the Rwanda Stock Exchange on August 22, the company announced. The bond carries a fixed annual interest rate of 13.25 per cent, with a minimum subscription amount of Rwf1 million. It will be issued in a single tranche. Speaking to The New Times, Fabrice Shema Ngoga, CEO and Founder of Africa Medical Supplier, described the bond issuance as as a strategic investment opportunity offering attractive returns. “This is our first bond issuance and the first for Rwanda’s health sector. It’s a win-win for both the company and investors,” Ngoga said, noting that the capital raised will be directed toward expanding access to essential health services in underserved communities. “Many countries still lack even basic laboratory testing capacity. This bond enables us to contribute to a broader transformation, bringing critical health solutions to underserved areas while contributing to the development of Africa’s healthcare ecosystem,” he added. ALSO READ: Collective effort needed to address Africa’s healthcare challenges: official According to the company’s prospectus, proceeds from the bond will be used to refinance USD-denominated debt of Rwf3.1 billion and provide Rwf1.9 billion in working capital to support growth. This funding will help the firm expand its capacity to secure and fulfill new contracts and tenders in both existing and emerging markets. Isaac Munene, Senior Corporate Finance Analyst at BK Capital – a transaction advisor for this issuance – noted that the AMS bond offers a competitive five-year yield of 13.25 percent, outperforming the government's 11 per cent benchmark. He was implying that investors in five-year government bonds are currently earning around 11 per cent per year based on prevailing market prices and coupon rates. Munene explained that the bond is amortized, meaning investors will begin receiving their principal after one year. “Although it’s a five-year bond on paper, the weighted average life is just 3.25 years. You get your money back faster. It’s a good instrument to have in your portfolio,” he said. “There’s been liquidity in the market, but institutional investors have struggled to get government bonds. This is a chance to lock in a high rate,” he added, noting that the firm has taken important steps by securing a credit rating, becoming a public company, and aligning with capital market standards. An opportunity for investors Celestin Rwabukumba, Chief Executive Officer of the Rwanda Stock Exchange (RSE), said the bond provides investors with an opportunity to diversify their portfolios by gaining exposure to a sector previously absent from the capital market. “This company will be the fourth SME in just the past three years to come to market. Through our Capital Market Investment Clinic, we’ve been helping these companies improve governance, operations, and readiness for public investment,” he said. On his part, Thapelo Tsheole, CEO of the Capital Market Authority (CMA), reiterated the Authority’s dedication to facilitating private sector access to long-term financing. “We encourage businesses to leverage the capital markets as a strategic financing option for their projects,” he added. AMS supplies medical products across Rwanda, DR Congo, and Central Africa to over 400 clients, including hospitals, NGOs, and government health programs. Its services focus on medical supply and support for noncommunicable diseases. Rwanda’s pharmaceutical market is projected to reach Rwf144.66 billion by 2028.
