The Capital Markets Authority has approved the new guidelines on issuance of green bonds. The move will allow local and international institutions to raise funds for environmental friendly projects through Kenya’s capital markets.
The Chief Executive Officer at the NSE, Geoffrey Odundo, said “the approval of the amendments to our listing rules to facilitate issuance of green bonds will enable the NSE offer local and international issuers additional source of green financing, improve investor diversification as well as enhance issuer reputation thus leading to growth in our market.”
Green bonds are commonly used in advanced economies as a source of funding for environmental projects, renewable energy production, and activities that fight climate change. Kenya is the third country in sub-Saharan Africa to approve the issuance of green bonds after Nigeria and South Africa.
South Africa has the most advanced green bond market
By issuing green bonds, Kenya will attract international and local investors keen on averting climate change. It is an opportunity to market Kenya as a leading investment destination. Additionally, green bonds will provide investors with alternative options aside from the existing products on offer.
Related; KenGen Plans to Raise Funds in H2 2019 through Green Bond Issue
