Mahwi Grain Millers has made history to officially become the first Rwandan Agri business Small and Medium Enterprise (SME) to float a Rwf5billion corporate bond on the Rwanda Capital Markets. Mahwi Grain Millers Plc is a leading Rwanda based firm in maize aggregation and processing into food for human consumption and animal feed, located at Bugesera Special Economic Zone.
The medium- term note programme was launched this August 9, 2024 by the Minister of Trade and Industry, Dr. Jean Chrysostome Ngabitsinze, alongside officials from Private Sector Federation (PSF), Capital Markets Authority (CMA and Rwanda Stock Exchange (RSE). The corporate bond is expected to pay a twice-a-year high interest rate of up to 15 percent which is comparatively a higher offer in the region, said Davis Gathaara, the bond’s Lead Transaction Advisor .
Gathaara said that Mahwi Grain Millers expects to collect the projected five billion sum in two phases with the first phase eyeing Rwf3billion but high hopes that the company can get the sum in the next two weeks- during the bond duration before it is listed on RSE stocks.
Chantal Habiyakare, the Mahwi Grain Millers Chairperson said that their confidence of getting the bond from the public is based on their production (150 metric tons per day), the company growth and turnover that has since 2021 increased from Rwf78million to Rwf3billion and currently clocking over Rwf8billion.
We want to aggregate our cash flows and this money we are seeking will help us to improve our capacity and aggregate our mills during the dry seasons so as to have raw materials and production through the year without any hiccups, Habiyakare said.
Habiyakare also said that the consolidated bond will be used to expand their animal feed processing.
As Mahwi Grain Millers Plc becomes the first SMES to register on the Rwanda Stock Markets, Thapelo Tsheole, the CEO CMA said that this should not be a surprise for SMES to list on the stock markets because that is one of the objectives of a business- to grow.
The Minister of Trade and Industry, Dr. Jean Chrysostome Ngabitsinze who officially launched the bond said that Mahwi Grain Millers has the potential to feed the Rwanda market and thus its bond will be useful to this end.
I am one of the client of Mahwi maize flour, but I want to assure you that this company is able. We at one time had a maize price crisis and the pressure was building among the population but when I approached Mahwi Grain Millers, they were able to save us as policy makers and solved the problem within a short time, Ngabitsinze narrated.
The corporate bond (Notes) will be listed on the Rwanda Stock Exchange (RSE) on 2nd September 2024 to facilitate trading. The Offer will close at 1700hrs on 23rd August 2024. Potential Investors may subscribe for the Notes by obtaining the Prospectus, Pricing Supplement and Application form from RSE Authorised selling Agents as well as Mahwi Grain Millers Plc’ website
Celestin Rwabukumba, the CEO RSE said that Mahwi is the 2nd SME company from the Stock Market Clinic cohort which started in 2018 and has been able to be profile and listed on the Rwandan stock markets, which is a proof to demystify that stocks are not only for big companies and investors.
Energicotel was the 1st SME to issue a 10-year bond and it was listed on the RSE. However, one more SME from the clinic program is yet be profiled, making the total number of SMEs on Rwanda stock market three. Rwabukumba revealed that currently the local market capitalization to GDP in Rwanda stands at 25% and this calls for more SMES to come on-board so as to contribute to the country’s growth.
