Kenya’s first green bond (fixed-income securities that draw capital for climate and environmental projects) has raised KES4.3 billion.

As reported by Reuters, the bond was issued by Nairobi-based property developer Acorn Holdings.

‘The subscription book was well diversified with significant interest from Kenyan domestic pension funds, commercial banks, insurance and reinsurance companies and non-resident funds,’ according to Stanbic Bank, which arranged the deal. Carrying an interest rate of 12.25%, the issue surpassed its original minimum target of KES2 billion.

Meanwhile, the Kenyan Capital Markets Regulator has described the issuance as crucial to ‘advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya’.

The bond will be used to facilitate the construction of green-certified student housing properties that will accommodate approximately 5 000 students.

8 October 2019
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