- On Monday, Kenya’s first green bond was listed for trading on the NSE.
- The 5-year bond worth Sh4.3 billion ($42.5m) was issued by real-estate developer Acorn.
- The bond, that attracts a 12.5% interest annually, is waiting for “final approvals” to cross list next week on the London Stock Exchange (LSE).
You can now invest in sustainable projects in Kenya such as renewable energy, Eco-friendly transport, energy efficiency, and wastewater treatment among others at Nairobi Securities Exchange (NSE).
On Monday, Kenya’s first green bond was listed for trading on the NSE.
The 5-year bond worth Sh4.3 billion ($42.5m), issued by real-estate developer Acorn, will be listed in three tranches with the newly listed first tranche floated at Sh786 million ($7.86million).
Speaking at the listing, the UK Secretary of State for International Development Alok Sharma described the listing of the green bond that is supported by the UKaid as a “landmark for Kenya.”
“I recognize the role that capital markets can play in creating jobs and driving forward the economy and that’s what this transaction is all about,” he said, The Standard reported.
Kiprono Kittony, a member of the board of the Nairobi Securities Exchange (NSE) said the timing was right for the green bond listing.
“Our capital markets, our investors and indeed our government have started to take climate change seriously ,” said Kiprono.
“They will be listing the green bond also on the London Stock Exchange next week which is a first also to have a Kenyan shilling bond listed in the United Kingdom.”
The bond, that attracts a 12.5% interest annually, is waiting for “final approvals” to cross list next week on the London Stock Exchange (LSE).
NSE boss Geoffery Odundo added that the bond, which is a secondary listing, would act as a catalyst for the bonds market, which had slowed down in the recent past. He reckoned international investors and local private equity funds would be the early investors for the bond.
“We think the green bond is going to create a new interest in the market,” said Odundo.
The Central Bank of Kenya (CBK) Governor Patrick Njoroge hailed the bond adding that Kenyan banks had committed to sustainable financing especially after the signing of the banking charter last year.