Page 16 - BEA December 2019 - January 2020

FIRST EVER GREEN BOND Real Estate

ISSUANCE LAUNCHED TO FINANCE

CONSTRUCTION OF HOSTELS

ommercial banks and pen- average of 6,800 shillings monthly.
sion funds schemes were The first phase of the eco-friendly
Camong the highest subscrib- affordable hostels is expected to ac-
ers of Kenya’s first ever Green commodate 5000 college students.
Bond which was issued by Accorn
Holdings Limited, a leading con- The government has been urged to
struction company in Kenya. continue encouraging such green
ventures including removing tax
According to the company’s CEO on environmental friendly projects
Edward Kirathe, the bond gener- including tax exemptions to rope in
ated 4.3 billion shillings, represent- more private equity in the sector.
ing an 85 per cent subscription rate,
and was over and well above the The green bond is expected to raise
minimum target of 2 billion shil- funds to provide 5,000 university
lings. students with environmentally-
friendly, affordable housing in
He said the proceeds are expected Nairobi
to fund the construction of eco-
friendly hostels for university
students in the country, with a com-
bined capacity of 40,000 beds. The
cost of renting a room will be at an

Qwetu: Students: The hostels segment is
attracting major investment in Kenya

Building East Africa | December/ January 2020
14
14 Building East Africa | November/December 2018
Promoting sustainable development
Promoting sustainable development