27 June 2014

Rwanda: BRD Gets Frw4 Billion Credit From Fonerwa

The Fund for Environment and Climate Change (Fonerwa) and the Development Bank of Rwanda (BRD) on Thursday signed a Frw 4 billion loan agreement to expand the bank's on-lending capacity to private sector investments for sustainable green economic growth.

The permanent secretary in the ministry of natural resources, Caroline Kayonga, who signed on behalf of Fonerwa, expressed satisfaction in partnering with BRD, and also reaffirmed the country's commitment to sustainable development and a green economy.

"We are pleased to partner with BRD that has a tremendous experience and management expertise to extensively identify projects that respect the overall mandate of the fund [green economic growth], which is in line with the EDPRS II objectives," said Ms. Kayonga.

The chief executive officer of BRD, Alex Kanyankole, emphasized that BRD will now start to comprehensively finance climate change interventions that support the country's national development agenda.

"This loan agreement will strengthen and expand the bank's short, medium, and long term financing capacity to short, medium, and long term financing capacity to projects initiated and undertaken by private business communities that focus on clean technology, environmental sustainability, climate resiliency, and green investments," said Kanyankole.

While Fonerwa's Frw 4 billion loan represents 70% of the fund, BRD committed to add an additional Frw 1.7 billion to make up a total revolving line of credit of Frw 5.7 billion that will be utilized in financing green energy projects.

The projects to be jointly identified by Fonerwa and BRD will be financed with attractive interest rates not exceeding 11.45% per annum.

The Fonerwa loan is in line with its mandate provided in the law of 2012 establishing the fund, which is to program, fund, and monitor environment and climate change projects.


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