Kenya mulls listing of sovereign green bond

Source: Xinhua| 2019-10-22 18:25:47|Editor: Li Xia
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NAIROBI, Oct. 22 (Xinhua) -- Kenya is considering listing a sovereign green bond at the Nairobi Securities Exchange (NSE), an official said on Tuesday.

Samuel Kimani, chairman of the NSE, told Xinhua in Nairobi that there is currently huge appetite among both foreign and local investors for climate-sensitive debt instruments.

"The government is exploring the option of issuing a green bond at the NSE next year in Kenya shillings," Kimani said when NCBA Bank listed new shares on the NSE following the merger of NIC Bank and Commercial Bank of Africa.

He said that the government has a number of infrastructure projects in the pipeline, some of which qualify to be funded through green funds.

Kimani added that the east African nation has already enacted legal reforms to offer tax incentives on green bonds.

He observed that the capital markets players are upbeat about the green bond market in Kenya after the country's first green corporate bond raised 4.3 billion shillings (41.5 million U.S. dollars) early this month.

According to the NSE, some of the public projects that can be funded with green bonds include geothermal, solar and wind power projects as well as environmentally friendly buildings and waste treatment plants.

Kimani revealed that Kenya is keen to be at the forefront of utilizing sustainable sources of finances as most of its key economic sectors are vulnerable to climate change.