NCBA Group Arranges Oversubscribed KES 3 Billion KMRC Sustainability Bond Listed on the NSE

NCBA Group has successfully arranged the listing of the Kenya Mortgage Refinance Company (KMRC) KES 3 billion Sustainability Bond at the Nairobi Securities Exchange, following overwhelming investor demand that saw the issuance oversubscribed by 312.8 percent.

The Sustainability Bond attracted applications worth KES 9.38 billion, underscoring strong market confidence in both KMRC’s affordable housing mandate and NCBA’s proven capital markets structuring capabilities.

NCBA acted as the Lead Arranger for the transaction, which marks the second successful issuance under KMRC’s approved KES 10.5 billion Medium-Term Note Programme. The latest listing builds on the success of KMRC’s inaugural KES 1.4 billion bond issued in 2022, which also recorded significant investor interest.

Speaking during the listing ceremony, the Group Managing Director of NCBA Group, Mr John Gachora said:

“The successful listing of KMRC’s Sustainability Bond demonstrates the growing appetite for well-structured sustainable financing instruments and highlights the critical role financial institutions play in mobilizing capital towards national development priorities. As Lead Arranger, NCBA is proud to have leveraged its deep structuring expertise, market insight, and distribution capability to deliver a transaction that advances affordable and climate-resilient housing in Kenya.

This transaction further reinforces NCBA’s position as a trusted advisor and leading arranger of impactful capital markets solutions that drive sustainable economic growth.”

Through its integrated Corporate and Investment Banking and Investment Bank teams, NCBA continues to play a leading role in deepening Kenya’s capital markets while supporting innovative financing solutions aligned to sustainability and ESG objectives.

Proceeds from the Sustainability Bond will be blended with KMRC’s concessional funding and deployed towards refinancing:

1. Eligible green affordable home loans supporting climate-resilient and environmentally sustainable housing; and
2. Eligible social home loans aimed at expanding inclusive access to homeownership, particularly for women and low-income households.

According to the KMRC Chief Executive Officer and Managing Director, Mr. Johnstone Oltetia, the issuance represents a landmark transaction for Kenya’s sustainable finance market.

“Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable. The investor response demonstrates confidence in KMRC’s mandate of promoting affordable homeownership while deepening Kenya’s debt capital markets,” said Mr. Oltetia.

By providing long-term liquidity to primary mortgage lenders, KMRC enables access to fixed-rate, single-digit mortgage facilities with longer repayment periods, helping reduce monthly repayment burdens for qualifying homeowners.

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