Kenya Launches First Green Bond

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  • Kenya has approved its first ever issuance of a green bond, which will raise USD 48.45 million or 5 billion shillings for student accommodation.
  • So-called green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

The bond, to be issued by a Nairobi-based property developer called Acorn, comes after authorityโ€™s unveiled new rules in February designed to guide the issuance of green bonds. โ€œThe issuance is a critical step in advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya,โ€ the Capital Markets Authority of Kenya (CMA) said in a statement yesterday.

Acornโ€™s issue, which will not be listed, will finance the construction of โ€œsustainable and climate-resilient studentโ€ hostels, CMA said. It will be structured as โ€œrestricted public offerโ€, meaning the issuers will target sophisticated investors who will get a 50% guarantee from credit guarantees provider Guarantco on both their investments and the interest, CMA added.

Author: Bryan Groenendaal

 

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