Kenya to cross-list green bond on NSE, LSE

stock market
stock market

Kenya plans to cross-list a corporate green bond at the Nairobi Securities Exchange (NSE) and the London Stock Exchanges(LSE) in January 2020, an NSE official said on Monday.

David Irungu Waggema, head of business development at NSE told journalists in Nairobi that the 4.26 billion shillings (about 42 million U.S. dollars) debt instrument that was issued by Kenya based property developer Acorn Holdings in October, will be floated at the Nairobi and London exchanges next year.

“The green bond will target to raise funds to finance environmentally sustainable projects in Kenya,” Waggema said on the sidelines of a Diaspora symposium.

Waggema noted that pension funds, institutional investors as well as retail investors are expected to purchase the corporate bonds because it offers numerous tax advantages compared to conventional bonds.

According to the NSE, the green bond will also help to end the current drought of corporate bonds at the Nairobi bourse.

“We have seen a slowdown of companies using bonds to raise funds to finance their activities. This green bond is expected to attract more companies to float debt instruments at the capital market,” Waggema said.

He also noted that the government also plans to issue a sovereign green bond at the NSE in order to fund public infrastructure projects that are environmentally friendly. Enditem

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