KCB to raise Ksh300B through sustainability bond programme

KCB Group aims to raise up to Ksh300 billion over five years through a Medium-Term Note program featuring a Sustainability Bond Framework. This framework directs the funds towards environmental, social, and economic projects. The first tranche, targeting Ksh100 billion, is subject to regulatory approval. The framework, unveiled on August 19, specifies how the funds will be used, tracked, and reported.

Proceeds will be earmarked for projects in renewable energy, energy efficiency, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing, micro, small and medium-sized enterprises (MSMEs), women- and youth-led enterprises, and employment initiatives. The bank can refinance existing eligible assets, and a Sustainable Bond Register will record allocations.

The bank will publish annual reports on allocations and impacts, including geographical distribution and project categories, until all proceeds are allocated. The framework earned an SQS2 rating from Moody's, indicating favorable sustainability quality. The program leverages KCB's existing green financing portfolio, which has disbursed over Ksh187 billion since 2022.

KCB's CEO, Paul Russo, emphasized the framework's alignment with the bank's history of innovative financing solutions and purpose-driven investments. The initiative aims to deepen Kenya's capital markets and expand access to development financing, particularly in line with the government's climate and environmental agenda.