Linzi FinCo 003 Trust, a subsidiary of the Pan-African Liaison Group, has listed a KSh 44.79 billion Infrastructure Asset-Backed Security (IABS) on the Nairobi Securities Exchange (NSE).
- •Backed by future revenues from the Talanta Sports City project—an anchor facility for Kenya’s AFCON 2027 ambitions—the transaction represents one of the most sophisticated structured financings in East Africa.
- •It blends domestic capital mobilization with innovative financial engineering.
- •Building on its groundbreaking 2024 Sukuk issuance, which raised KSh 3 billion to finance 3,069 affordable housing units, Linzi FinCo now scales its ambition to fund transformative infrastructure.
GCR Ratings assigned the 15-year senior secured note an AA(KE)(IR) rating with a stable outlook. The firm’s pivot from affordable housing to large-scale infrastructure reflects a strategic deepening of its impact in alignment with national development goals and the Sustainable Development Goals (SDGs).
Linzi 003 is a senior secured, dematerialized medium-term note with a 15-year tenor, maturing in July 2040. Investors earn an internal rate of return (IRR) of 15.04% per annum, based on the issue price. Repayments occur on an amortized basis with semi-annual redemptions every January 8 and July 8, beginning in January 2026.
The table below summarizes the bond’s core terms:
| Feature | Details |
|---|---|
| Issuer | Linzi FinCo 003 Trust |
| Instrument | Infrastructure Asset-Backed Security (IABS) |
| Total Size | KSh 44.79 billion |
| Maturity | 15 years (due July 2040) |
| Internal Rate of Return (IRR) | 15.04% p.a. |
| Repayment | Semi-annual amortized installments |
| Minimum Subscription | KSh 1 million |
| Denomination | KSh 100,000 |
| Tax Status | No WHT, no CGT, no stamp duty |
| Listing Segment | RFISMS – Nairobi Securities Exchange |
| Credit Rating | AA(KE)(IR) by GCR |
Allotment Incentives
Linzi FinCo structured this issuance to reward early participation:
- •Applicants within the first 5 days of the offer automatically receive at least 50% of their allocation.
- •Remaining amounts are distributed on a pro-rata basis. The issuance closed on June 30, 2025, achieving a 100.19% subscription rate—a signal of strong investor confidence in the structure and underlying project.
Linzi 003 offers tax-friendly returns:
- •Interest income is exempt from withholding tax
- •Transfers incur no capital gains tax
- •No stamp duty applies on issuance or redemption Additionally, Kenya’s network of double taxation treaties with countries like the UK, UAE, India, and South Africa enhances the bond’s appeal to international investors.
GCR’s AA(KE)(IR) rating affirms the note’s strong credit quality. Investor protections include:
- •An escrow account to manage repayments
- •A standby liquidity facility to handle unforeseen shortfalls These mechanisms ensure consistent cash flow for investors and enhance market confidence.
Offer Execution and Settlement
- •Receiving Bank: KCB Bank Kenya (Moi Avenue Branch)
- •Placement Agents: CPF Financial Services and KCB Investment Bank
- •Payment System: Real-Time Gross Settlement (RTGS)
- •Key Dates: T+48 (Settlement), T+49 (Listing), T+66 (Trading Commences)
All investors must hold a CDS account under the NSE’s Restricted Fixed Income Securities Market Sub-Segment (RFISMS).
Linzi FinCo is the financing arm of the Liaison Group, a pan-African financial services firm founded in 1981. Fully owned by Kenyan banker Tom Mulwa, Linzi FinCo specializes in capital markets structuring, Islamic finance, pensions, and investment services. In 2024, it issued Kenya’s first Islamic Sukuk.
