Kenya’s first ever green bond issued by Acorn Holdings generated 4.3 billion shillings surpassing their minimum target of 2 billion shillings.
Acorn Holdings Limited CEO Edward Kirathe says commercial banks and pension funds schemes were among the highest subscribers of the bond with the money raised expected to fund the construction of eco-friendly hostels for university students in the country.
In August this year the Capital Markets Authority approved the issuance of Kenya’s first unlisted green bond.
The bond that was floated by Acorn a construction company sought to raise 5 billion shillings.
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The bond issue just fell short of the target raising 4.3 billion shillings representing an 85 per cent subscription rate.
The capital raised will be used to construct cheap and environmental friendly university hostels with a combined capacity of 40,000 beds, with a room renting at an average of 6,800 shillings monthly.
The government has been urged to continue encouraging such green ventures including removing tax on environmental friendly projects including tax exemptions to rope in more private equity in the sector.
The first phase of the eco-friendly affordable hostels is expected to accommodate 5000 college students.
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