Kenya Launches $500M Green Bond

## What's New

Kenya has successfully issued a $500 million sustainability-linked bond, the first of its kind by an African sovereign. The bond was 3x oversubscribed, pricing at 8.25%—150 basis points below initial guidance.

Why It Matters

This changes the playbook for African sovereign debt. By linking coupon rates to verified emissions reductions, Kenya secured better terms than traditional Eurobonds while committing to measurable climate targets. Other African nations are watching closely.

The Details

Bond structure: - **Size**: $500 million (upsized from $300M target) - **Tenor**: 10 years - **Coupon**: 8.25%, stepping up 25bps if KPIs missed - **KPIs**: 30% renewable energy by 2030, 10% forest cover increase

Lead arrangers: Standard Chartered, Citi, JPMorgan

Investor breakdown: - European institutions: 45% - US investors: 30% - Asian funds: 15% - African investors: 10%

What's Next

Rwanda and Ghana are reportedly exploring similar structures. The African Development Bank is developing a continent-wide framework for sustainability-linked sovereign issuance.

Go Deeper

Full prospectus available on the Kenya Treasury website. We'll analyze the verification framework in tomorrow's deep dive.