FIRST EVER GREEN BOND ISSUANCE LAUNCHED TO FINANCE CONSTRUCTION OF HOSTELS

Commercial banks and pension funds schemes were among the highest subscribers of Kenya’s first ever Green Bond which was issued by Accorn Holdings Limited, a leading construction company in Kenya.

According to the company’s CEO Edward Kirathe, the bond generated 4.3 billion shillings, representing an 85 per cent subscription rate, and was over and well above the minimum target of 2 billion shillings.

He said the proceeds are expected to fund the construction of eco-friendly hostels for university students in the country, with a combined capacity of 40,000 beds. The cost of renting a room will be at an average of 6,800 shillings monthly. The first phase of the eco-friendly affordable hostels is expected to accommodate 5000 college students.

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 green bond is expected to raise funds to provide 5,000 university students with environmentally-friendly, affordable housing in Nairobi

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