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Kenya approves issuance of first green bond

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Kenya approves issuance of first green bond


Kenya approves issuance of first green bond

Bond

Nairobi, Aug. 15, 2019 Kenya has approved its first ever issuance of green bond, which will raise five billion shillings ($48.45 million) for students’ accommodation, the capital markets regulator, CMA, said on Thursday.

The CMA said in Nairobi that the bond, to be issued by a Nairobi-based property developer, Acorn, came after the authorities unveiled new rules in February, designed to guide the issuance of green bonds.

“The issuance is a critical step in advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya,” the CMA said in a statement.

Green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.

CMA said Acorn’s issue, which would not be listed, would finance the construction of “sustainable and climate-resilient students’ hostels.

CMA added that the bond would  be structured as “restricted public offer,” meaning the issuers will target sophisticated investors who will get a 50 per cent guarantee from credit guarantee provider, Guarantco, on both their investments and the interest.

Acorn was not immediately available for comment.

In January, the Hongkong and Shanghai Banking Corporation (HSBC) said global green bond issuance is seen at $140-$180 billion this year, from $149.2 billion in 2018. (Reuters/NAN)

JI/EMO

Joseph Idika: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

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