Acorn Holdings to raise a further Ksh.1.4 billion from bondholders
Student accommodations’ developer Acorn Holdings is set to raise a further Ksh.1.4 billion from holders of its multi-year bond.
This as an extension of its current medium term note program to Ksh.5.7 billion from a flat Ksh.5 billion, a move backed by the Capital Markets Authority (CMA).
The issue will however be limited to specific investors, likely participants of the inaugural issue as guided by provisions of restricted public offers.
As of April 1 this year, Acorn’s medium-term note (MTN) program had raised Ksh.4.2 billion out of the initial Ksh.5 billion.
At the same time, Acorn had mopped Ksh.3.3 billion through its income real estate investment trust (I-Reit).
Proceeds from the expanded issue are expected to go towards supporting the expansion of its Qwetu branded hostels.
The developer is targeting to have at least a 6,500 beds under its student housing portfolio in the short run from a current 3000 beds.
At the same time, Acorn Holdings has announced the complete transition of liabilities under Acorn Project II Partnership to the Acorn student accommodation development real estate investment trust (D-Reit) after obtaining all requisite approvals.
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