This archive report was first published on 4 October 2019.
On October 4, 2019, Kenya's first green bond was successfully issued, raising Sh4.3 billion to fund environmentally-friendly student houses.
The green bond, issued by property developer Acorn Holdings, was arranged by Stanbic Bank and priced at an interest rate of 12.25 per cent, above the government's rating of B2.
According to Stanbic Bank, the subscription book was well-diversified, attracting significant interest from Kenyan domestic pension funds, commercial banks, insurance and reinsurance companies, and non-resident funds.
The green bond was structured as a 'restricted public offer', targeting sophisticated investors who received a 50 per cent guarantee from credit guarantees provider Guarantco on both their investments and the interest.
Over-the-counter trading will be allowed, and the green bonds are expected to help protect Kenya from the impact of extreme weather on the agriculture sector, as stated by Nuru Mugambi, a director at the Kenya Bankers Association.
SEE ALSO: CMA Approves Kenya's First Green Bond
