Kenya has reached a major milestone in its transition towards a low carbon economy with its first ever 4.3 billion shillings (£33m) green bond.
Issued by Kenya-based real estate development company Acorn Holdings, with funding and support from UK aid, the bond has been certified as green by the UK Climate Bonds Initiative due to its expected contribution to reducing carbon emissions.
The British High Commission in Nairobi said UK aid funded GuarantoCo has also provided a partial guarantee to reduce the risk to investors who buy into the bond, which helped raise the full amount of the bond.
The green bond will be invested in environmentally-friendly housing for 5,000 students in Nairobi, contributing to tackling climate change in the country.
Alok Sharma, UK Secretary of State for International Development said: “The UK is mobilising private sector investment to help African nations make the most of their enormous potential. We are leading the way in the listing of green bonds, with over 100 bonds listed on the London Stock Exchange.
“The growth of the green bond market in East Africa is supporting vital climate resilient infrastructure and helping provide 5,000 students in Kenya with environmentally-friendly, affordable housing.”