CMA chief executive Paul Muthaura. FILE PHOTO | NMG
Helios Sh5bn hostels green bond gets CMA approval
The Capital Markets Authority (CMA) has approved the first green bond to be issued by property developer Acorn Group and PE fund Helios to raise Sh5 billion for construction of student hostels.
The fixed rate unlisted bond is being issued as a private placement, meaning it is being marketed to a select number of investors only, hence its tenor and coupon were not disclosed in the CMA notice issued Thursday.
Acorn and Helios target to build up to 3,800 university hostel units in Nairobi at a cost of about Sh7.4billion.
They have already put up more than 1,000 units in Ruaraka, Jogoo Road and Parklands under the Qwetu brand.
“The green bond seeks to raise Sh5 billion to finance sustainable and climate-resilient student accommodation and is structured as a restricted public offer for sophisticated investors,” said CMA in the notice.
“‘The issuance is a critical step in advancing the development of an effective ecosystem to support the establishment of green capital markets in Kenya.”