Africa Medical Supplier PLC (AMS) has formally launched its initial bond on the Rwanda Stock Exchange (RSE), marking it as the pioneering healthcare enterprise in the nation to introduce a publicly available corporate bond. Following Energicotel, Mahwi Grain Millers, Prime Energy, International Finance Corporation (IFC), and two Sustainable Linked Bonds (SLBs) issued by the Development Bank of Rwanda (BRD), AMS now stands as the seventh corporation to list a bond on RSE. Last year saw Mahwi Grain Millers, Prime Energy, and BRD present their respective bonds, whereas Energicotel made its debut on the exchange back in 2021. In addition, BRD introduced its first SLB in 2023, and this year witnessed IFC returning to the marketplace through the launch of the Umuganda Bond.
Fabrice Shema Ngoga, CEO and founder of AMS, stated, “This significant accomplishment represents not just our firm’s progression and perseverance, but even more so, demonstrates our shared dedication towards reshaping the healthcare environment throughout Rwanda and internationally.”
The company managed to secure Rwf5 billion with complete subscriber participation. Additionally, read about how Africa Medical Supplier concluded its maiden Rwf5bn bond with total subscriptions. The bond features a duration of five years, released in one installment, carrying an annual interest rate of 13.25%, paid biannually. According to Ngoga, AMS’ path toward achieving this feat has been guided by cooperative alliances, steadfast faith in sustainable practices, and investments aimed at advancing healthcare quality.
AMS provides medical goods and devices to approximately 400 customers such as hospitals, clinics, drugstores, non-governmental organizations, United Nations bodies, and state-run health initiatives. “Investors’ confidence in our organization is something we hold dearly; we must strive diligently to deliver profits while simultaneously guaranteeing the prosperity of our operations,” he emphasized.
Funds obtained from the bond will serve to settle AMS’s US dollar-based liabilities and facilitate its broader geographical development, allowing the company to meet fresh healthcare agreements and bidding processes within Rwanda, Democratic Republic of Congo, and beyond. “This funding will enable us to extend our reach. Although we’re currently active in Rwanda, we’ve also established branches in the Democratic Republic of Congo and Zambia,” remarked Ngoga. “Our aim is to grow further into additional nations like Guinea-Conakry and the Central African Republic.”
Celestin Rwabukumba, chief executive officer of the Rwanda Stock Exchange, observed that this notable listing indicates increasing influence exerted by the Capital Market Investment Clinic along with rising assurance among investors concerning the financial system. Also Read: An insightful examination of Africa Medical Supplier’s initial corporate bond.
“It showcases various enterprises—especially Small and Medium-sized Enterprises (SMEs) and larger firms aiming to obtain funds—are aware that resources are accessible, and investors are willing provided their ventures make logical sense and adhere to regulations,” expressed Rwabukumba. Furthermore, he mentioned that the AMS bond, drawing attention from both professional and individual investors alike, serves as encouraging news for Rwanda’s stock market.
“People typically associate themselves with governmental securities, yet they ought to recognize that businesses too can offer debts or stocks openly. During this calendar year alone, nearly four different bonds were initiated, indicating that these developments significantly contribute to overall economic advancement,” he commented.
Starting after eighteen months, part of the original amount borrowed via the AMS bond will undergo gradual reimbursement, reducing potential risks faced by shareholders and facilitating consistent repayments during the entire five-year period. “Such actions play crucial roles economically because they assist domestic economies using homegrown investors. Naturally, global participants remain welcomed, however, this signifies that native residents are actively participating,” added Rwabukumba.
Thapelo Tsheole, head of CMA, praised the announcement as a landmark event enhancing Rwanda’s financial arena. “Its contribution complements current offerings found in the market, which proves beneficial,” asserted Tsheole. Moreover, introducing entirely novel sectors inside the bond industry—the healthcare domain—is highlighted alongside showcasing capabilities of financial systems capable of supporting organizational expansions regardless of size.
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