This archive report was first published on 27 September 2019.
The National Assembly's recent approval of a bill exempting green bonds from withholding tax is expected to boost investment in sustainable finance, with estimates suggesting over KSh500 billion in private sector investment and over 500,000 jobs created.
On a related note, Acorn's 5-year green bond, arranged by Stanbic Bank, closes today, September 27, 2019. The bond, which has a 12.25% interest rate, is guaranteed up to 50% of principal and interest by GuarantCo, amounting to $30 million.
GuarantCo's sponsors include governments from the UK, Netherlands, Switzerland, Australia, and Sweden, as well as FMO, the Dutch Development bank.
Capital Markets Authority approved the issuance of the first green bond by Acorn on August 16, 2019, to finance sustainable and climate-resilient student accommodation.
The bond's allotment is scheduled for September 30, 2019, with a minimum subscription level of 40% required for it to be deemed a success. The bond is limited to institutional investors only.
Interestingly, the bond carries a rating from Moody's that is higher than Kenya's sovereign rating.
