NSE chief executive Geoffrey Odundo monitors the daily tradings at the NSE headquarter/FILE Green finance presents a big opportunity for investors in the country, Nairobi Securities Exchange Chief Executive, Geoffrey Odundo has said.
He said many foreign investors are keen on investing in the green bonds asmatters climate are currently big in the global economy.
“Sustainability financing is a great space for the Kenyan markets for us, we are focusing on platforms that offer this bonds and they are many corporates that are willing to invest in this,” said Odundo. Sustainability financing is a great space for the Kenyan markets for us, we are focusing on platforms that offer this bonds and they are many corporates that are willing to invest in this Proceeds raised on the capital markets through green bonds essentially fund climate adaptation and emissions reduction projects while, at the same time, promising sustainability-focused investors a return.
Green financing for Kenya presents opportunities in real estate investment trust, equity companies and also bonds.
“Kenya being a hub of green financing in many ways from geothermal to wind for electricity, some aspects of housing has seen a large number of social impact investors coming into the country,” said Odundo.
The country has the first Green D-Reit in the world, this is a Green Real Estate Investment Trust where houses a firm could invest in housing but building green housing that helps in the fight against climate change.
Acorn Holdings raised $41million in 2019 towards building sustainable student accommodation units in Kenya, making it the first green bond offering in the country.
The Nairobi bourse has already launched a green bond which has been attracting a large number of foreign investors, and according to Odundo they are in works with the government to launch a sovereign green bond.
“The green bonds bring many foreign investors will be a great boost to setting up Kenya as an international finance centre as we will get high dollar inflows and also many firms will setup their headquarters in the country,” said Odundo.
Leading investment firms such as Blackrock have started focusing some of their assess on green financing, therefore if Kenya invests in this this could be a big boost for our markets.
The green bond market, however, remains relatively nascent in emerging markets and sub-Saharan Africa, though it shows promising green shoots for exponential growth in futureAccording to an international paper, the United Kingdom is set to launch its first […]
