GuarantCo provided Acorn with a guarantee for 50 percent of the principal and interest of the KES 1.4 billion (USD 12.9 million) Medium Term Note programme upsizing, following the first transaction in October 2019, to support additional green-certified student accommodation in Nairobi
GuarantCo provided Acorn with a guarantee to support the KES 1.4 billion (c. USD 12.9 million) upsizing of the Medium Term Note (MTN) programme to finance the construction of two additional green-certified student accommodation sites in Nairobi. It is expected to expand Acorn’s bed capacity by nearly 50 percent to 7,295 beds.
Acorn Project Two Limited Liability Partnership, the Issuer of the Acorn MTN programme, closed the second and final tranche on 16th July 2021 and raised KES 2.096 billion against the target of KES 1.438 billion, achieving a subscription rate of 146 percent.
GuarantCo expects that its second transaction will further drive market transformation through replication by institutional investors in the purpose build student accommodation market to the benefit of students who can live in high quality and affordable accommodation.
The accommodation caters for both men and women, with women expected to be around 50 percent of the student and gender considerations carefully factored into the community living spaces. The additional funds raised will also lead to further job creation and have a wider economic impact through project contracts to local businesses.