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CMA opens way for green bonds

Mutwiri Muriithi @mutwirimuriithi

The Capital Markets Authority (CMA) has set the stage for issuance of green bonds by establishing rules that will guide its issuance by the Nairobi Stocks Exchange (NSE).

Green bonds are fixed income securities that raise capital to help finance projects in renewable energy, energy-efficiency, green transport and waste-water treatment.

Kenya needs to raise billions of shillings to finance infrastructure projects including roads, water and irrigation, railways and power generation.

The green bonds market has been embedded in the legal framework through publication of a policy guidance on issuance of green bonds and the approval of amendments to the NSE listing rules by CMA.

NSE chief executive Geoffrey Odundo (pictured) said that the target was to issue one in 2019 to provide “traction” for other issuers.

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