Kenya Green Bonds Programme stakeholder forum between developers and bankers identifies robust pipel

Nairobi, Wednesday 13 September 2017 – The Kenya Bankers Association (KBA), Nairobi Securities Exchange (NSE), Climate Bonds Initiative (CBI) and Financial Sector Deepening Africa (FSD Africa) and FMO in conjunction with the Kenya Green Building Society (KGBS) and the Kenya Property Developers Association (KPDA) have today hosted a stakeholder forum on Kenya’s Green Bonds programme between select member banks of the KBA, developer members of KGBS and KPDA, the National Treasury and the pooled bond structuring consultant Lion’s Head Global Partners. The programme, , is endorsed by the Central Bank of Kenya (CBK), Capital Markets Authority (CMA) and the National Treasury.

In March 2017, KBA, the NSE, CBI and FSD Africa signed a Cooperation Agreement to support the development of a green bonds market in Kenya. FSD Africa has committed USD 600,000 over a period of three years, to fund the programme with the objective of aiding Kenyan banks and corporates to be in a position to tap the growing investor demand for green investments.

Through the partnership and funding from FSD Africa, a technical support programme was implemented to enable the partners to develop a pipeline of potential bond issuers and support demonstration green bond issuance from leading banks and corporates in Kenya. KGBS and KPDA assembled a group of private sector developers to showcase a USD 277 million pipeline of projects targeting green certification in Kenya in 2017 and 2018. KGBS demonstrated its capacity as the Kenyan chapter of the World Green Building Council (WGBC) to act as the Kenyan-based licensed verifiers in the built environment. KGBS’ Board Chair also acts as Regional Vice Chair of the Africa Regional Network of the WGBC to support KBA’s efforts in building capacity locally to catalyse similar programmes across East Africa. In addition to the FSD Africa funding, FMO had earlier committed USD 350,000 to support KBA develop the framework to create the industry’s first pooled green bond facility under the consultancy guidance of Lion’s Head, a specialized merchant bank based in London and Nairobi, focusing on emerging markets and Sub-Saharan Africa. The facility that would allow KBA member banks, especially Tier 2 and Tier 3 banks, and corporates to take advantage of wholesale debt capital markets.

During the stakeholder consultation forum, the KGBS CEO Ms. Rehema Muniu gave an overview of the green building movement, which was supplemented by a framework of global green finance alternatives by Mr. Madhur (Muddy) Ramrakha, Board Treasurer of KGBS. Mr. Peter Odhengo of National Treasury delivered an impassioned outline of the series of government policies, initiatives and incentives available in the market today, and under development, indicating Kenya’s forward thinking in sustainable development. At a roundtable discussion moderated by Mr. Muddy Ramrakha, developer members of KGBS and KPDA discussed their projects across the multi-unit residential, commercial and industrial spheres, they outlined their drivers for green certified development, and their challenges with accessing green finance facilities through the local banking market. At a panel moderated by Mr. Ngatia Kirungie of Spearhead Africa, banker members of KBA in turn discussed their risk analysis models which cover environmental & social governance, their participation in certain development finance institution (DFI) green finance facilities, and their approaches to risk assessment. Mr. Leonard Mathu of Lion’s Head outlined the progress in development of the pooled bond structures, the first of its kind in Africa.

In a spirit of collaboration, bankers, developers and supporting NGOs committed to working together to make Kenya’s green bond launch a benchmark for green finance and development of the green economy required to achieve the aims of the Kenya Green Bonds Program .

Ends.

Note to editors

About Kenya Bankers Association

KBA (www.kba.co.ke) was founded on 16th July 1962. Today, KBA is the financial sector’s leading advocacy group and banking industry umbrella body that represents total assets in excess of USD 37 billion. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry, and championing financial sector development through strategic projects such as the launch of the industry’s first P2P digital payments platform PesaLink. In line with the Government’s policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. The KBA members are comprised of commercial banks and deposit taking microfinance banks.

Nairobi Securities Exchange (NSE)

The NSE is a company established under the Companies Act, Cap 486 of the Laws of Kenya (as amended) and is licensed by the Capital Markets Authority to promote, develop, support and carry on the business of a securities and derivatives exchange and to discharge all the functions of a securities and derivatives exchange under the applicable Laws of the Republic of Kenya.

About the Climate Change Initiative (CBI)

The CBI is a private company limited by guarantee, established under the Companies Act 2006 of the United Kingdom and registered as a charity in England and Wales, and mandated to work for the preservation and conservation of the environment for the public benefit.

About FSD Africa

FSD Africa is a non-profit company which aims to increase prosperity, create jobs and reduce poverty by bringing about a transformation in financial markets in SSA and in the economies, they serve. It provides know-how and capital to champions of change whose ideas, influence and actions will make finance more useful to African businesses and households. It is funded by the UK aid from the UK Government

For more information about FSD Africa’s activities and current updates follow our social media platforms:

Twitter: @FSDAfrica

Linkedin: Financial Sector Deepening Africa (FSD Africa)

Website: www.fsdafrica.org

Email: evans@fsdafrica.org

About Lion’s Head Global Partners

Lion’s Head is a specialized merchant bank based in London and Nairobi, focusing on emerging markets and Sub-Saharan Africa. We provide financial advisory services across a range of sectors, including agriculture, health care, education, financial intermediation and infrastructure.

Website: http://www.lhgp.com/

Twitter: @LionsHeadGP

About Kenya Green Building Society

The KGBS is an independent, non-profit, non-political, member-based organisation formed to lead the transformation of the built environment in Kenya toward environmentally sustainable buildings, promoting a healthy and efficient built environment. Its mission is to advocate, educate and certify green buildings in Kenya in order to achieve an environmentally, socially and economically progressive built environment.

KGBS has achieved the second of three tiers of membership as an “Emerging” status member of the World Green Building Council.

Website: www.kenyagreenbuildingsociety.co.ke

Twitter: @infokgbs

Facebook: @KenyaGreenBuildingSociety

About Kenya Property Developers Association

The Kenya Property Developers Association was established in Nairobi in 2006 as the representative body of the residential, commercial and industrial property development sector in Kenya. It is an emerging Business Member Organisation which works in proactive partnership with policy-makers, financiers and citizens to ensure that the property development industry grows rapidly but in an organized, efficient, economical and ethical manner.

Website: www.kpda.or.ke

Twitter: @DevBringsDev

Facebook: @Devbringsdev kpda

For media enquiries please contact:

Financial Sector Deepening Africa (FSD Africa)

Martin Namasaka

Communications Co-ordinator

Mobile: +254731953944

Email: martin@fsdafrica.org

Kenya Bankers Association

Nuru Mugambi

Director of Communications and Public Affairs