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ENERGICOTEL PLC receives subscription of 100% to raise Rwf3.5 billion

By IGIHE
On 27 July 2021 at 01:20

ENERGICOTEL PLC (“The Issuer”) has raised Rwf 3.5 billion for the first tranche of its debut Rwf 6,500,000,000 Long Term Fixed Rate Corporate Bond Program via a public offer, marking a subscription of 100%. The bond will be listed on the Rwanda Stock Exchange for trading on the secondary market.

ENERGICOTEL PLC is a Rwandan based Independent Power Producer (IPP) and an Engineering Consulting Company.

The Issuer sought to raise Rwf3.5 billion in its first tranche, with a 10 - year tenure bond priced at 13.75% per annum.

The first tranche that received approval from the Capital Markets Authority (CMA) on 18th June 2021 will enable The Issuer to refinance its existing debt obligations to match its borrowings with long-term energy contracts to optimize its cash flows for further development.

Commenting on the development, ENERGICOTEL PLC Executive Director Ferdy Turasenga said: “Following the approval of the Capital Market Authority (CMA) to issue and list our Corporate Bond on the Rwanda Stock Exchange (RSE), it is a great honour for us to have successfully raised the 1st tranche of the investment and we are so excited with the opportunity to bring on board a wider pool of retail and institutional investors, to participate and contribute to the growth of Rwanda’s capital market and to benefit from the reiterated Rwanda’s commitment to providing a conducive business environment.’’

“We hope that the contribution of ENERGICOTEL to the Energy Sector as well as the National Economy will encourage and attract more Energy Private Developers and other companies both locally and internationally to join our market and enjoy the benefits of Investing in Rwanda,” he added.

The Issuer was able to attract a diverse base of local investors, whereby 80% of the funds raised were allocated to Institutional Investors and 20% to retail investors.

The transaction advisors were BK Capital Limited; PricewaterhouseCoopers (PwC) Rwanda Limited as the reporting accountants; Bank of Kigali PLC as the Receiving Bank, Fiscal Agent and Registrar; RR Associates and MMC ASAFO as the legal advisors; Hope Holdings Limited as the media and public relations consultants.

About ENERGICOTEL “ECTL” PLC

ENERGICOTEL “ECTL” PLC is an Independent Power Producer (IPP) and an Engineering Consulting Company with Power Purchase Agreements and Concessions to upgrade, finance, operate and maintain power plants in Africa. Currently, ECTL operates 3 Hydro Power Plants namely: Keya, Nkora & Cyimbili in the Republic of Rwanda. With a consistent capital outlay, now totaling to over Rwf4 billion, ENERGICOTEL “ECTL” PLC has transformed the Hydro Power Plants (HPPs) to a combined installed capacity of 3.2MW and supplied 17M kWh of electricity to the national grid in 2020.

Given the potential energy resources which are under development in the region, ECTL looks to the future of energy with great hope to exploit the opportunity presented in the region and beyond.

In the pipeline, ENERGICOTEL “ECTL” PLC has various energy power generation projects, all in the Renewable Energy Space, at different stages of the project development cycle of approximately 50MW of Power Generation including the Methane Gas-to-Power Pilot Project in Lake Kivu, a Hydro-power Project in Kenya, DRC, and Solar Power Plant in Zimbabwe and so on in Malawi.

For more information, you can visit ENERGICOTEL website: https://energicotel.com/

Keya is among Hydro Power Plants operated by ENERGICOTEL.

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