Acorn Holdings Limited, a pioneer in green financing, is preparing to retire its Sh5.7 billion green bond earlier than anticipated. The bond, which was set to mature in November 2024, will now be fully repaid by early October. This marks a significant milestone not only for Acorn but also for Kenya’s financial market. The bond, initially issued in 2019, was the first of its kind in Africa, structured to fund affordable and sustainable student housing under Acorn’s portfolio.
Acorn’s successful bond issuance and early repayment underscore the strength and viability of green financing as a tool for sustainable development. The funds raised were directed toward building environmentally friendly student accommodation facilities, including the popular Qwetu and Qejani residences in Nairobi. These developments have provided safe, secure, and affordable housing for thousands of university students, a critical need in Kenya’s rapidly growing education sector.
The company’s decision to settle the bond early is a reflection of its solid financial performance, boosted by high demand for student housing. In addition, it demonstrates the growing confidence in Kenya’s green bond market, which could pave the way for more such bonds to finance eco-friendly projects in the country. Financial experts believe that this move may inspire other developers and investors to explore green bonds as a viable option for funding sustainable projects, contributing to the country’s broader green economy goals.
