[bctt tweet=”Acorn Green Bond, the first-ever green bond issuance in Kenya and East Africa at large, raised KSh4.3Bn representing an 85 per cent subscription.”]
The green bond intends to fund the construction of environmentally friendly and affordable accommodation for approximately 5000 university students.
[bctt tweet=”The successful issue of the first green bond is a key milestone in Kenya’s quest to transition into a low-carbon economy.”]
The UK government through GuarantCo guarantees payment of the principal and interest on the bond thus reducing the risks to investors who buy into the bond. In addition, support by the Netherlands government helped to raise the full amount of the bond.
[bctt tweet=”Issued by Acorn Holdings, the bond has been certified as green by the UK Climate Bonds Initiative due to its expected contribution to reducing carbon emissions.”]
In addition, the bond is the first Kenyan corporate bond rated by an international rating agency.
The Green Bonds Programmes Kenya is a partnership initiative between Financial Services Deepening (FSD), Kenya Bankers Association (KBA), Nairobi Securities Exchange (NSE), Climate Binds Initiative, and Dutch Development Bank.
Listen to a transcript of our interview with Nuru Mugambi, a Sustainable Finance Advocate, Curator of Kenya Green Bond Program, and Director at the Kenya Bankers Association.
Related:
Tax-exempt green bonds could encourage investment
CMA approves Kenya’s First Green Bond
Kenya Paves the Way for Issuance of Green Bonds
