Acorn Green Bond has raised over 2.096 billion shillings, an oversubscription of 650,000 shillings in the bond that was closed on Friday 16. The issuer had targetted to raise at least 1.438 billion shillings from the green bond.
“We see the oversubscription of our Green Bond as a huge vote of confidence for Acorn and the wider Capital Markets especially given the ongoing Covid-19 pandemic,” said Acorn Holdings Limited Group CEO Mr. Edward Kirathe.
In October 2019, Acorn issued a 5 billion shillings MTN program, which became the first Green Bond in Kenya. In the process, the first issuance raised 4.262 billion shillings, an oversubscription of 2 billion shillings.
“When we started this journey in 2019, the Bond Market in Kenya had essentially died up with new issuances non-existent,” added Mr. Kirathe.
The funds raised in the green bond deal are meant for the construction of affordable student housing projects, where Acorn is set to begin construction of around six green-certified student properties in Nairobi.
These properties are expected to create accommodation for about 5,000 students in Kasarani, Karen, Nairobi West, and Ngara.
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