Nairobi-based property developer Acorn Holdings issued Kenya's first green bond, raising $41.45m to build climate-resilient student accommodation in the capital. Stanbic Bank, which arranged the deal, announced that much of the interest came from domestic pension funds, commercial banks and insurance firms. The bond was priced at an interest rate of 12.25% with a B1 Global rating, according to Reuters, a level above the Kenyan government's B2 rating. In other words, this is not just another example of how climate change can be used as a tool for economic development.
Nairobi-based property developer Acorn Holdings issued Kenya's first green bond, raising $41.45m to build climate-resilient student accommodation in the capital. Stanbic Bank, which arranged the deal, announced that much of the interest came from domestic pension funds, commercial banks and insurance firms. The bond was priced at an interest rate of 12.25% with a B1 Global rating, according to Reuters, a level above the Kenyan government's B2 rating. Green bonds will help to protect Kenya's agricultural sector against catastrophic weather incidents, according to the Kenya Bankers Association, with the Green Bonds Programme designed to unlock the potential of green finance.