‘Green’ bonds in the offing

Saturday April 1 2017

Nairobi Securities Exchange board displaying trading data. PHOTO | FILE

Nairobi Securities Exchange board displaying trading data. PHOTO | FILE 

By JAMES NGUNJIRI
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The Kenya Bankers Association (KBA) and Nairobi Securities Exchange (NSE) has launched the Kenya Green Bonds programme to fight climate change.

The bonds will allow local banks and corporates to better deliver green investments in renewable energy, low carbon transport, water infrastructure and sustainable agriculture.

During the launch yesterday in Nairobi, KBA, NSE, Financial Sector Deepening Africa (FSD Africa), and Climate Bonds Initiative (CBI) signed a cooperation agreement to support the development of a green bonds market in Kenya.

FSD Africa committed Sh61.8 million ($600,000) over a period of three years to fund the programme with the objective of aiding KBA to be in a position to tap the growing investor demand for green investments.

“It is expected that this programme will improve access to a complementary source of longer-term capital alongside traditional, shorter-term bank loans, while contributing to the financing of green investments and improving the environment,” said FSD Africa Director Mark Napier.