Acorn taps Ksh.2.1 billion from bonds
Students housing based developer Acorn Holdings has raised a further Ksh.2.1 billion from the final tranche of its 2019 green bond issue.
The issue which closed at the end of last week surpassed its target of raising Ksh.1.4 billion by 46 per cent as investors marked high appetites for the note.
Proceeds from the final tranche adds to Ksh.4.3 billion raised in Acorn inaugural green bond in October 2019, the first in the country.
The additional financing will go towards the construction of another two student hostels with the capacity of 2,654 beds.
This will bring the total number of developments funded under the MTN program to eight with a total bed capacity of 7,349.
Acorn’s green bond has since been transformed into a development real estate investment trust (D-REIT).
All Acorn student accommodation projects are now being developed and constructed through the D-REIT before being switched to an investment real estate investment trust (I-REIT) once operational.
The approach unlocks construction capital and enables it to be recycled in new developments.
Acorn has student residences across Nairobi and its environs under the brand name Qwetu including Ruaraka, Jogoo Road, Parklands and Langata road.
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