August 16 (Renewables Now) - Kenya’s Capital Markets Authority (CMA) has approved the issuance of the country’s first green bond, worth KES 5 billion (USD 48.4m/EUR 43.6m), in support fo sustainable and climate-resilient projects.
The fixed-rate bond, which will not be listed, will be issued by Acorn Project (Two) Limited Liability Partnership, part of property developer Acorn, CMA said on Thursday. The placement will be structured as a restricted public offer for sophisticated investors, with funds from the transaction to go for sustainable and climate-resilient student accommodation.
Investors taking part in the deal will benefit from a 50% guarantee from Guarantco on principle and interest payments.
The bond placement will be launched after Kenyan authorities unveiled new rules for the issuance of green bonds in February. “The issuance is a critical step in advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya [..],” said CMA’s CEO Paul Muthaura.
(KES 100 = USD 0.968/EUR 0.872)