Two unnamed financial institutions have lined up to issue Kenya's first ever green bonds, the country's banking sector lobby disclosed on Wednesday.
This follows regulators' approval of the legal framework to issue the listed and unlisted financial instruments at the Nairobi Securities Exchange (NSE).
The procedures for listing of the financing instruments for climate-friendly projects on the NSE have been approved by the Capital Markets Authority (CMA) and are expected to pave the way for their issuance.
"The approval of the amendments to our listing rules to facilitate issuance of green bonds will enable the NSE offer local and international issuers additional source of green financing, improve investor diversification as well as enhance issuer reputation thus leading to growth in our market," NSE chief executive Geoffrey Odundo said Wednesday during the launch of the amended rules.
Kenya Bankers Association (KBA) director of public affairs Nuru Mugambi said the two unnamed Kenyan banks are firming up plans to issue the special bonds to raise money in the war on climate change. She did not provide timelines.