Acorn repays Sh2.7bn green bond balance early
- Published By Jane Njeri For The Statesman Digital
- 5 days ago
Acorn Holdings, a leading student hostel developer, has successfully repaid the remaining balance of its Sh2.7 billion green bond ahead of its scheduled maturity next month.
The repayment is part of the Sh5.7 billion five-year bond issued in 2019, which was used to finance several student housing projects across Nairobi, including Chiromo, Thika Road, Hurlingham, and Makadara.
These developments collectively provide over 7,000 student beds, with a combined capacity of 2,500 beds.
The bond, issued through Acorn Student Accommodation (ASA), offered investors a return of 12.5 percent and was instrumental in supporting environmentally sustainable student housing projects.
“The success of this Green Bond has exceeded our expectations. It has not only strengthened our financial position and capital markets presence, but also delivered wide-ranging socioeconomic impact – from affordable student housing and climate-conscious development to job creation, particularly for women-owned enterprises,” Acorn Holdings CEO Edward Kirathe said.
Acorn, which funds project through a combination of 65 percent debt and 25 percent equity, did not through which funding source was used to repay the bond ahead of time.
In the half year to June this year, Acorn Investment Management Limited (AIML) announced a Sh586 million profit, representong a 24 percent growth compared to a profit of Sh474 million during a similar period in 2023.
It then attributed the growth to improved revenue from the Acorn Student Accommodation Development REIT (ASA D-REIT) and the Acorn Student Accommodation Income REIT (ASA I-REIT).
Acorn, which typically funds its projects through a combination of 65 percent debt and 25 percent equity, did not specify which funding source was used to repay the green bond ahead of schedule.
In the first half of 2024, Acorn Investment Management Limited (AIML) reported a Sh586 million profit, representing a 24 percent growth from the Sh474 million profit recorded in the same period in 2023.
The company attributed this growth to increased 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 have been key contributors to Acorn’s expanding presence in the student housing sector.
“The successful issuance of Acorn’s bond showcased the market’s growing maturity and readiness for more sophisticated financial products,” CMA, Director of Market Operations Daniel Warutere stated.
“The structure of the bond was the first of its kind. As CMA other than being a regulator we have a mandate to grow the market. The success of this bond paved the way for other entities to consider bonds as a feasible option for raising capital.”
Share on
Tags
SHARE YOUR COMMENT
MORE STORIES FOR YOU
Trending Stories
DJ Mo’s former illicit lo...
- Published By Jane
- January 15, 2024
Mapenzi! Zari and Tanasha...
- Published By Jane
- October 24, 2023
Zuchu Speaks on Diamond P...
- Published By Jane
- October 12, 2023
Hio Ni Upumbavu Wasituche...
- Published By Jane
- November 8, 2023
RECOMMENDED FOR YOU
How to deal with a silent...
- Published By Jedida
- October 16, 2024
How to set yourself up fo...
- Published By Jedida
- October 16, 2024
Postpartum Hemorrhage: Si...
- Published By Jedida
- October 16, 2024
Study reveals long term e...
- Published By Jedida
- October 16, 2024
Latest Stories
Supreme Court declares Fi...
- Published By Jedida
- October 29, 2024
Migori: Man kills his fat...
- Published By Jedida
- October 29, 2024
Murder suspect escapes po...
- Published By Jedida
- October 29, 2024
Tana River: Man sentenced...
- Published By Jedida
- October 29, 2024