The Development Bank of Rwanda’s Pioneering SLB: A Global First for a National Development Bank and in East Africa

The Development Bank of Rwanda (BRD) launched its inaugural Sustainability-Linked Bond (SLB) on the Rwanda Stock Exchange. The SLB supports ESG initiatives, women-led business loans, and affordable housing in line with Rwanda’s sustainable development goals. Partially credit-enhanced by the World Bank, it has a seven-year maturity, targeting 30 billion RWF ($24.8 million). This is part of a $124 million Medium Term Note (“MTN”) Programme.

The Government of Rwanda appreciates the World Bank’s support through this innovative financing instrument. This SLB issuance, approved by the Capital Market Authority, is a first globally for a national development bank and in East Africa. It has an innovative step-down coupon structure, encouraging meaningful targets.

BRD’s CEO, Kampeta Sayinzonga, highlights the diversification of funding sources and innovative financing for SDGs. The SLB links funding with sustainability strategies and supports key performance indicators (KPIs) aligned with Rwanda’s Vision 2050.

Keith Hansen, World Bank Country Director, commends Rwanda and BRD for their innovation. The credit enhancement funded by the Government of Rwanda has helped mobilize private sector capital. BRD aims to issue without credit enhancement in the future due to its strong balance sheet and credit rating.

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