Acorn Holdings Limited (AHL) has announced plans to repay its Sh5.7 billion Acorn Green Bond Medium Term Note ahead of its maturity date in November 2024.

The early redemption, which will occur in the first week of October, reflects the company's strong financial position and the success of its green bond program.

Launched in 2020, the Acorn Green Bond was a pioneering initiative in Africa, becoming the continent's first green housing bond and the first to be cross-listed on both the London Stock Exchange and the Nairobi Securities Exchange.

The proceeds from the bond were used to develop safe, affordable, and sustainable student accommodation (PBSA) for university students.

The decision to redeem the bond early underscores AHL's commitment to its investors and its ability to meet its financial obligations.

The bond was backed by a 50 per cent guarantee from GuarantCo, a leading credit risk insurer, and AHL's corporate guarantee.

Since its issuance, the Acorn Green Bond has played a significant role in Kenya's corporate bond market, attracting over Sh5.5 billion from local pension funds and facilitating a Sh6.7 billion green facility from ABSA.

The bond has also contributed to the development of green assets within the region, with all six PBSA projects financed by the bond now completed.

In addition to its financial benefits, the Acorn Green Bond has had a positive impact on the Kenyan economy.

It has created thousands of jobs, stimulated the local construction supply chain, and improved access to credit for small and female-owned SMEs.

Furthermore, the bond has enabled the development of green assets with onsite renewable energy installations, reducing the overall carbon footprint.

The Acorn Green Bond has been recognized for its contribution to sustainability and green development.

It has received certification from the Climate Bonds Initiative and the IFC EDGE program, and AHL has been recognized as an EDGE Champion in Africa.

The early redemption of the Acorn Green Bond is a testament to the success of the green bond market in Kenya and the growing investor interest in sustainable investments.

It also highlights AHL's leadership in the development of green infrastructure and its commitment to creating a more sustainable future.