Africa Medical Supplier PLC (AMS), a leading supplier and distributor of medical products in Rwanda, has been approved by the Rwanda Capital Market Authority (CMA) to issue the first corporate bond in the healthcare sector.
This move makes AMS the first medical supply and distribution firm in Rwanda to raise capital through a corporate bond, paving the way for many more in the pipeline.
The approval means that AMS will take steps toward rolling out a public offering and then listing on the Rwanda Stock Exchange (RSE) to raise Rwf5 billion through a Medium-Term Senior bond with a tenor of 5 years, which will be issued in a single tranche.
The bond carries a fixed annual interest rate of 13.25%, with a minimum subscription amount of Rwf1,000,000. It features an amortizing structure with semi-annual interest payments. Principal repayments will begin 18 months after settlement, resulting in a weighted average life of approximately 3.25 years.
The public offering opens on July 24 and will remain open for subscription until August 7. The bond is scheduled to be listed on the Rwanda Stock Exchange on August 22, at which point secondary market trading will officially commence.
AMS operates across Rwanda and the Democratic Republic of the Congo (DRC), supplying life-saving products and equipment to hospitals, polyclinics, pharmacies, and health centers, among others.
Yves Sangano, Chairman of AMS, said that this approval marks a pivotal moment not just for AMS but also for the healthcare sector to access life-saving medical services that remain out of reach for many.
“AMS will use the proceeds from the bond to refinance its existing USD debt and fund the company’s growth by increasing the capacity to deliver new contracts and tenders across existing and new markets,” Sangano said.
Fabrice Shema Ngoga, AMS Chief Executive Officer & Founder, said the bond issuance will be a significant financial achievement for AMS, showcasing the strength of its business model and commitment to responsible growth.
“The proceeds will enable us to strategically invest in expanding our capacity to deliver more medical services, ensuring long-term financial sustainability,” Ngoga said.
