Acorn Holdings, a well-known real estate developer, is collaborating with Standard Bank and MiDA Advisors to raise USD $700 million (KES equivalent) in long-term blended finance for environmentally friendly, reasonably priced student housing in Kenya.
If authorized, the deal will involve a maximum of USD $180 million from the US Development Finance Corporation (DFC), obtaining over USD $380 million in KES equivalent finance coordinated by MiDA Advisors and Stanbic Bank Kenya, a Standard Bank Group member. Additionally, Kenyan capital markets will provide finance worth more than USD $315 million in KES equivalent. Over the course of eighteen years, the partners hope to raise over USD $700 million in blended finance.
The Chief Executive for Corporate and Investment Banking at Standard Bank Group, Kenny Fihla, states that this collaboration aligns with the group’s commitment to driving Africa’s socio-economic development.
“This transaction will further entrench our commitment to facilitating sustainable investments on the continent. We have set ambitious targets of raising between R250 billion and R300 billion for sustainable finance by the end of 2026,” Fihla says.
The partnership will build 35 certified green housing projects, adding over 48,000 new student beds over the course of the next ten years, making it the biggest student housing investment in Africa. By generating an estimated 15,000 direct jobs and 35,000 indirect jobs, this project seeks to address Kenya’s lack of reasonably priced, high-quality housing for postsecondary students.
Standard Bank has worked with Acorn Holdings before. In collaboration with Acorn Holdings, the bank was instrumental in introducing the first-ever green bond to the East African market for ecologically friendly student accommodation in Nairobi. Additionally, Standard Bank made it possible for the greatest amount of Acorn Holdings’ Income and Development Real Estate Investment Trusts (REITs) to be purchased via the Unquoted Securities Platform.The post Standard Bank, MiDA, Acorn Launch Green Housing Initiative first appeared on IT News Africa | Business Technology, Telecoms and Startup News.