NAIROBI, Kenya- In a move that underscores its financial strength and commitment to sustainable development, Acorn Holdings, Kenya’s leading student hostel developer, has fully repaid the remaining balance of its Sh2.7 billion green bond.
This repayment, completed ahead of the bond’s scheduled maturity next month, is part of a broader Sh5.7 billion five-year bond issued in 2019 to fund student housing projects across Nairobi.
The bond, which attracted investors with a 12.5pc return, was instrumental in supporting environmentally friendly student accommodation developments.
Projects financed through the bond include high-demand student hostels in areas such as Chiromo, Thika Road, Hurlingham, and Makadara, collectively providing over 7,000 student beds and accommodating around 2,500 students.
Acorn’s CEO, Edward Kirathe, praised the success of the bond, highlighting its wide-ranging impact.
“This Green Bond has not only exceeded our expectations in terms of financial returns but has also delivered significant socioeconomic benefits,” Kirathe noted.
“We’ve been able to provide affordable, eco-friendly student housing while creating jobs, particularly for women-owned enterprises.”
The early repayment of the bond reinforces Acorn’s growing reputation in capital markets.
Acorn’s financial momentum is also reflected in its recent earnings report. Acorn Investment Management Limited (AIML) posted a Sh586 million profit for the first half of 2024, a 24pc increase compared to Sh474 million recorded in the same period last year.
The company attributed this impressive growth to higher revenue from its two real estate investment trusts (REITs): the Acorn Student Accommodation Development REIT (ASA D-REIT) and the Acorn Student Accommodation Income REIT (ASA I-REIT).
These REITs continue to play a crucial role in Acorn’s expansion within the student housing sector, offering a strong revenue stream and attracting institutional investors.
The success of Acorn’s green bond has drawn attention from the Capital Markets Authority (CMA), Kenya’s financial regulatory body.
Daniel Warutere, CMA’s Director of Market Operations, praised the bond as a landmark development in Kenya’s financial market.
“The structure of Acorn’s bond was the first of its kind in the market. It showcased not only the maturity of Kenya’s capital markets but also the readiness for more sophisticated financial products,” Warutere remarked.
By repaying the bond early, Acorn has set a high bar for other companies considering bond issuance as a viable means of raising capital, signaling that sustainable investments can deliver both financial returns and positive environmental outcomes.
