Acorn Holdings redeems Africa’s first green housing bond early

Acorn Holdings Limited has announced the early redemption of its Ksh 5.7 billion Green Bond, marking a significant milestone in its journey towards sustainable development and economic empowerment. 

The company says it has completed the repayment of the remaining Ksh 2.7 billion, along with accrued interest, well ahead of the official maturity date in November.

Issued in 2020, the Green Bond – the first of its kind in Africa to be cross-listed on both the International Securities Market of the London Stock Exchange and the Nairobi Securities Exchange – has catalyzed the development of green-certified, safe, and affordable student housing across Kenya.

The bond has financed the development of over 7,000 student beds across 8 purpose-built student accommodation properties in Nairobi, including Qwetu and Qejani Chiromo, opening their doors in August with a combined capacity of 2,500 beds. Beyond financing bricks and mortar, Acorn has delivered extensive socioeconomic value.

“This is a proud moment that exemplifies Acorn’s core values of innovation, sustainability and empowerment. The success of this Green Bond has exceeded our expectations. It has not only strengthened our financial position and capital markets presence, but also delivered wide-ranging socioeconomic impact – from affordable student housing and climate-conscious development to job creation, particularly for women-owned enterprises.” Acorn Holdings CEO, Edward Kirathe, says.

”We are honoured to have led the way in driving forward a greener, more inclusive vision of growth in Kenya.” 

The company estimates creating over 5,600 direct jobs and 9,600 indirect jobs as well as influencing the creation of more than 20,000 additional jobs through its developments, with over 80% of construction materials sourced locally. This has provided a lifeline to small enterprises, especially those women-owned, helping catalyze growth in local economies.

Acorn has also embedded sustainability into its projects, with green building certifications, on-site renewable energy, and tree planting activities. This has reduced the carbon footprint of its student housing while preventing over 1,000 metric tonnes of CO2 emissions annually. The runaway success has culminated in Acorn achieving multiple global recognitions. These include being named an International Finance Corporation (IFC) IFC EDGE Champion for green development, consistently achieving a 4-star rating in the Global Real Estate Sustainability Benchmark (GRESB) ESG Assessment, and receiving a Green Bond Award from the Climate Bonds Initiative.

“We are grateful to our investors who shared our vision for the future and to our partners for helping turn ambition into reality. As we build on this success, we remain committed to pushing new boundaries in sustainable, climate-smart development and empowering the next generation with access to quality housing,” Kirathe added.

The bond was guaranteed by GuarantCo which is part of the Private Infrastructure Development Group (PIDG).

 

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