RWANDA—Mahwi Grain Millers PLC, an industrial processing company in Rwanda, has successfully listed its first corporate bond, valued at Rwf 5 billion (US$4.5 million) on the Rwanda Stock Exchange (RSE).
Launched on September 2, 2024, the milestone marks a significant stride for the company and Rwanda’s financial market, as Mahwi becomes the first SME from the agribusiness sector to achieve this status.
Mahwi Grain Millers was incorporated in 2018 and specializes in processing grains into human and animal food and based in Bugasera Special Economic Zone in southeastern Rwanda.
Currently, it mainly produces and distributes 150 tonnes of refined maize flour every day. It also produces fortified maize flour for school feeding, maize flour for high-end consumers, and maize flour for export. Its processing lines have a production capacity of 250 tonnes daily.
Chantal Habiyakare, Chairperson of Mahwi Grain Millers, highlighted the significance of this achievement, describing it as a culmination of nine years of effort to raise capital on the stock market as an SME.
“The food industry has never failed, and we are ready to invest where it should be. I invite everyone to consider investing in the next tranche; there is still room for more capital,” she stated.
Chantal said that it has been a journey of nine years to reach this point of raising capital on the stock market as an SME, which wasn’t easy in terms of convincing investors but was worth it.
The bond issuance was initially announced on August 9, following approval from the Capital Markets Authority (CMA), and the subscription period closed on August 23.
The bond will now be available for trading on the secondary market. The issuance will occur in two tranches: the first tranche, valued at Rwf 3 billion (USD 2.7 million) with a five-year tenor, and the second tranche, worth Rwf 2 billion (US$ 1.8 million), with its tenor to be determined later.
The bond carries a fixed interest rate of 15% per annum, payable semi-annually.
According to the company, proceeds from the first tranche of the bond are earmarked for expanding Mahwi Grain Millers’ maize aggregation system. Rwf 2.5 billion (US$2.25 million) is allocated as working capital to purchase maize grains during the harvest season, and Rwf 500 million (US$450,000) is for creditor obligations.
The funds from the second tranche will support the acquisition of equipment and construction activities, including Rwf 1 billion (US$ 900,000) for animal feed machinery, Rwf 600 million (US$ 540,000) for purchasing silos for maize storage, and Rwf 400 million (US$ 360,000) for building an animal feed factory.
Pierre-Célestin Rwabukumba, RSE Chief Executive, noted that this listing is a testament to Rwanda’s capital market and demystifies the misperception that the stock market is for sophisticated companies.
“After looking at Mahwi Grain Millers operations, the story behind, and the numbers, and further scrutiny, the company joined the investment clinic patiently, went through legal advisory process and reached a point of raising capital on the market,” he explained.
Additionally, this is the second company to graduate from an investment clinic and the first one in agro-processing to list on the stock market.
Mahwi Grain Millers’ listing reflects the growing maturity of Rwanda’s capital markets.
According to Thapelo Tsheole, CEO of the CMA, this achievement should encourage more SMEs to consider public listings as a viable growth option. The Minister of Trade and Industry, Dr. Jean Chrysostome Ngabitsinze, praised Mahwi Grain Millers for its role in ensuring food security and stabilizing the maize market during critical periods.
The RSE’s market capitalization now stands at 25% of Rwanda’s GDP, and Mahwi’s listing is expected to inspire further participation by SMEs, contributing to the country’s economic growth and financial inclusion.
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