This archive report was first published on 3 October 2019.
On October 3, 2019, Kenya made history with the successful issuance of its first-ever green bond, the Acorn Green Bond, which raised KSh4.3 billion, representing an impressive 85 percent subscription.
The bond, issued by Acorn Holdings, aims to fund the construction of environmentally friendly and affordable accommodation for approximately 5,000 university students.
The UK government, through GuarantCo, guarantees payment of the principal and interest on the bond, thereby reducing the risks to investors.
Support from the Netherlands government also played a crucial role in raising the full amount of the bond.
The bond has been certified as green by the UK Climate Bonds Initiative due to its expected contribution to reducing carbon emissions, making it the first Kenyan corporate bond rated by an international rating agency.
The Green Bonds Programmes Kenya is a partnership initiative between Financial Services Deepening (FSD), Kenya Bankers Association (KBA), Nairobi Securities Exchange (NSE), Climate Binds Initiative, and Dutch Development Bank.
