NCBA Group has arranged the listing of the Kenya Mortgage Refinance Company (KMRC) KES 3 billion Sustainability Bond at the Nairobi Securities Exchange (NSE), after the offer attracted investor applications worth KES 9.38 billion.
The bond was oversubscribed by 312.8 per cent, reflecting strong investor interest in sustainable financing and affordable housing projects in Kenya.
NCBA served as the Lead Arranger for the transaction, which marks the second issuance under KMRC’s approved KES 10.5 billion Medium-Term Note Programme. The latest bond follows KMRC’s inaugural KES 1.4 billion bond issued in 2022.
Speaking during the listing ceremony, NCBA Group Managing Director John Gachora said the strong uptake highlighted growing confidence in sustainable financing instruments and the role of financial institutions in supporting development priorities.
“The successful listing of KMRC’s Sustainability Bond demonstrates the growing appetite for well-structured sustainable financing instruments and highlights the critical role financial institutions play in mobilising capital towards national development priorities,” said Gachora.
He added that the transaction would support affordable and climate-resilient housing in Kenya while strengthening the country’s capital markets.
The proceeds from the bond will be combined with KMRC’s concessional funding to refinance eligible green and social housing loans.
According to KMRC, the financing will support affordable home loans linked to environmentally sustainable housing projects, as well as social housing initiatives targeting women and low-income households seeking home ownership.
KMRC Chief Executive Officer Johnstone Oltetia described the issuance as an important milestone for Kenya’s sustainable finance market.
“Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable and sustainable,” said Oltetia.
“The investor response demonstrates confidence in KMRC’s mandate of promoting affordable homeownership while deepening Kenya’s debt capital markets,” he added.
KMRC said the funding model is designed to provide long-term liquidity to primary mortgage lenders, helping expand access to fixed-rate mortgage facilities with longer repayment periods for homeowners.
NCBA said it will continue supporting capital markets transactions and financing solutions aligned with sustainability and ESG goals through its corporate and investment banking divisions.
