The Eastern region of the continent Kenya has endorsed its first ever issuance of a green bond which will raise 5 billion shillings ($48.45 million) for student accommodation in which the capital markets regulator (CMA) said recently.
Meanwhile, the green bonds are fixed income securities that raise capital for projects in renewable energy, energy efficiency, green transport and waste-water treatment.
The bond, to be issued by a Nairobi-based property developer called Acorn, comes after authorities unveiled new rules in February designed to guide the issuance of green bonds.
The CMA said in a statement that, “The issuance is a critical step in advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya.”
“Acorn’s issue, which will not be listed, will finance the construction of sustainable and climate-resilient student hostels,” CMA added.
The CMA stressed that, it will be structured as restricted public offer, meaning the issuers will target sophisticated investors who will get a 50% guarantee from credit guarantees provider Guarantco on both their investments and the interest.
Few months, HSBC said global green bond issuance is seen at $140-$180 billion this year, from $149.2 billion in 2019.