Property developer Acorn has listed its debut green bond on the Nairobi Stock Exchange (NSE), making the first such bond to be traded on Kenya’s stock exchange. Acorn Holdings this morning listed by introduction the Ksh. 4.3 billion green bond.
“The NSE has provided the platform for issuers & investors to raise capital and invest in environmentally friendly projects. We are committed to developing a vibrant green bond market that will serve the region,” said NSE Chairman Sam Kimani.
In October this year, Kenyan firm Acorn issued its first green Medium-Term Note (MTN) which hit 85 per cent subscription, raising KES 4.3 billion to fund EDGE certified student hostels.
The company intends to use the funds to develop the Qwetu and Qejani student hostel brands between November 2020 and April 2022 according to its green bond framework.
Acorn holdings intend to list the green bond on the London Stock Exchange next week, making it the first Kenya Shilling bond to be listed on the LSE.
Green financing is the use of fixed income financial instruments to raise funding for projects that are sustainable. The concept has been deployed in many sectors of priority in sustainability including renewable energy, infrastructure and environmental projects.