Kenya’s first green bond set to list on NSE next month

Tuesday, December 24th, 2019 00:00 |
NSE 20-Share Index. Photo/PD/FILE

Retail investors will soon have a chance to invest in the Acorn Green Bond following the announcement that the bond will list on Nairobi Securities Exchange (NSE) next month. 

Head of Business Development at the bourse David Irungu said the green bond, issued in August to select sophisticated investors, will list on the NSE on January 13. 

In October, Acorn Holdings, a Nairobi-based property developer, announced that the bond had attained 85 per cent subscription, raising Sh4.3 billion out of targeted Sh5 billion.

Green bond refers to a debt security issued for use in environment-friendly projects such as green housing, green energy, electric cars and so on. Acorn green bond was to fund environment-friendly low-cost hostels, named Qejani, targeting university students within Nairobi.

“The entire Sh4.3 billion bond is being floated and will be available to the public. Even people living in diaspora will benefit,” Wagemma said.

Institutional investors

“The Acorn bond offers decent returns, a fixed rate of 12.25 per cent, which is a high rate for a green bond,” he added. He said the listing was a chance for the institutional investors who invested in the bond earlier to exit by selling their stake at the securities exchange.

The corporate investors included pension funds, commercial banks, development financial institutions (DFIs) and insurance firms. 

Irungu said the bond, the first in East and Central Africa, will cross-list on the London Stock Exchange.

More on Money and capital markets