GuarantCo, a Private Infrastructure Development Group (PIDG) company, has provided investors with a partial credit guarantee to cover 50 percent of principal and interest due under the KES 5 billion note programme that raised KES 4.3 billion.

The Emerging Africa Infrastructure Fund (EAIF), another PIDG company, participated in the issue and is currently the largest single investor with a participation of KES 1.279 billion.

GuarantCo, through the PIDG Technical Assistance Facility, is providing Acorn with a part returnable grant to contribute towards the costs of the loan note issue, creating a significant enabling effect for this transaction.

Kenya currently faces a chronic shortage of student accommodation as university enrolment in Kenya has grown from 27,000 students in 1990 to around 550,000 students today whilst there are less than 40,000 beds available in the universities, creating a huge deficit.

Acorn, the first purpose-built student accommodation (PBSA) provider in Kenya, has stepped in to fill the gap.

The note programme is the first ever to achieve green certification in Kenya, which ensures the programme genuinely contributes to reducing carbon emissions. The construction of the environmentally friendly student accommodation will meet international green building standards for water, energy and construction materials, ensuring lower operation costs and a low-carbon impact over the long-term.

The funds will be used to finance the construction of up to 6 green-certified student properties developed by Acorn in Nairobi, creating clean, safe and affordable accommodation for 5,000 students in Nairobi.

The green certification was independently verified as meeting the Climate Bond Standard and Certification Scheme of the Climate Bonds Initiative and was funded by FSD Africa.