Kigali, 26th June 2014 –{ The Fund for Environment and Climate Change (FONERWA) and Development Bank of Rwanda (BRD), today signed a Rwf 4 billion loan agreement to expand the Bank’s on-lending capacity to private sector investments for sustainable green economic growth in Rwanda.
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The Permanent Secretary in the Ministry of Natural Resources (MINIRENA), Ms. Caroline Kayonga, who signed on behalf of FONERWA, expressed satisfaction in partnering with BRD, and also re-affirmed the country’s continued commitment to sustainable development and a green economy.
“We are pleased to partner with BRD that has 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” added Ms. Kayonga.
The Chief Executive Officer of BRD, Mr. Alex Kanyankole, emphasizes 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 or long term financing capacity to projects initiated and undertaken by private business community that focus on clean technology, environmental sustainability, climate resilient and green investments.” said Kanyankole.
While FONERWA availed Rwf 4B representing 70% of this fund, BRD undertook to top up with Rwf 1.7 to make up a revolving line of credit of Rwf 5.7B which will be utilized in financing the green energy projects.
The projects to be be jointly identified by FONERWA and BRD will be financed with an attractive interest rate not exceeding 11.45 percent per annum.
In its financing mandate, BRD is committed to protect and safeguard the environment, and the Bank ensures that beneficiaries undertake an Environmental Impact Assessment for the new projects to enhance sustainable green economy growth.
About{{ FONERWA}}
An entity established by the Law Nº16/2012 of 22/05/2012, FONERWA is a national fund established to program, fund and monitor environment and climate change funded projects.
FONERWA has the overarching objective of contributing to sustainable wealth creation and poverty reduction in Rwanda, through sustainable management of natural resources, climate resilient and green economic growth.
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