Kenya has successfully issued the first-ever green bond through Acorn Holdings generating 4.3 billion shillings above its minimum target that stood at 2 billion shillings.
“Kenya has successfully issued the country’s first certified green bond. The B1 rated bond which was arranged by Stanbic Bank and guaranteed by Gurantco raised 4.3 billion shillings against the target 2 billion shillings,” said Kenya Bankers Association.
Acorn Holdings Limited CEO Edward Kirathe said that during the issuance, commercial banks and pension funds schemes were the largest subscribers of the green bond.
The money raised in the first issuance of the green bond is expected to be channeled towards the construction of “eco-friendly hostels” for university students in the country.
The subscription rate for the bond stood at 85 percent. The first bond is expected to construct the first phase of hostels that will accommodate at least 5,000 college students.
According to the Kenya Bankers Association, “The second tranche is expected to raise 5 billion shillings that were approved by the Capital Markets Authority.”
The proceeds will go towards building 5,000 environmentally friendly and affordable student housing in Nairobi and its environs.