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KCB Bank Group unveils US$ 2.3bn sustainability bond framework to finance green projects across East Africa
Green financing will cover areas including solar power, energy-efficient buildings, low-emission transport, sustainable agriculture and water management, while blue financing will support marine, coastal and freshwater resilience.
KCB Bank Group plans to establish a Medium-Term Note Programme of up to $2.3 billion, or KSh300 billion, over five years to finance renewable energy, climate resilience, affordable housing and businesses across East Africa.
The lender said it will issue the programme on Wednesday under the group’s new Sustainability Bond Framework, subject to regulatory approvals and market conditions, with proceeds restricted for eligible Green, Blue and Social projects.
Social financing will target affordable housing, MSMEs, women and youth-led businesses, employment and livelihood creation for underserved and vulnerable populations.
The Group’s CEO, Paul Russo, said the framework is intended to direct capital towards projects needed across East Africa while tracking allocations and reporting on the resulting impact.
KCB formally embedded sustainability into its business in 2008, became the first Kenyan bank accredited by the Green Climate Fund in 2020, committed to net-zero emissions by 2050 through the Net-Zero Banking Alliance in 2021, and joined the Forward Faster Initiative in 2023.
The framework has received a Sustainability Quality Score of 2, rated “Very Good”, from Moody’s, according to KCB, as the lender seeks to mobilise long-term capital for infrastructure and economic development alongside projects addressing climate change, food insecurity, unemployment, inequality and gaps in affordable financing.