Standard Bank, Africa’s largest banking group by assets and MiDA Advisors, will be partnering with Acorn Holdings, an established real estate developer, in mobilising USD$700 million Kenya Shilling (KES) equivalent in long-term blended finance commitments for green, affordable student housing in Kenya.
Upon approval, the transaction will comprise up to USD$180 million commitment from the United States Development Finance Corporation (DFC) to secure over USD$380 million in equivalent KES financing arranged jointly by Stanbic Bank Kenya (a member of Standard Bank Group) and MiDA Advisors, and over USD$315 million in equivalent KES financing from Kenyan capital markets. The partners plan to raise roughly USD$700 million in total blended finance over an 18-year timeframe.
Kenny Fihla, Standard Bank Group’s Chief Executive for Corporate and Investment Banking, says the collaboration is consistent 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,” he says.
The collaboration will result in the construction of 35 certified green housing projects, creating approximately 48,000 new student beds over the next 10 years, making it the single largest investment into student housing in Africa. This project will be key to alleviating the shortage of quality and affordable accommodation for tertiary students in Kenya. The initiative will create an estimated 15,000 direct jobs and 35,000 indirect jobs.
This is not Standard Bank’s first collaboration with Acorn Holdings. The Bank was instrumental in bringing the first-ever green bond to East Africa, in association with Acorn Holdings, for environmentally friendly student housing in Nairobi. Standard Bank also facilitated the largest purchase of Acorn Holdings’ Income and Development Real Estate Investment Trusts (REITs) through the Unquoted Securities Platform.