Acorn Holdings, a real estate developer listed on the Nairobi Securities Exchange (NSE), is set to delist from the bourse.
The company has opted for early redemption of its KSh5.7 billion green bond, issued in 2019.
The bond, held by Acorn Student Accommodation (ASA) Development Reit, has been paying an annual interest rate of 12.5%. The ASA D-REIT develops student accommodation properties and sells them to the ASA I-REIT upon achieving stable occupancy, generating capital gains for D-REIT investors.
The 5-year medium-term note, originally scheduled to mature on November 8, 2024, will be redeemed on October 4, 2024. Investors will receive the nominal value of the notes, plus accrued interest.
In February 2023, Acorn secured a KSh6.7 billion debt from Absa to fund 10 projects. In May 2024, the company obtained an additional US$180 million from the U.S. International Development Corporation (DFC), with plans to attract an additional US$315 million from Kenyan capital markets.
Acorn previously indicated that it would not issue another corporate bond due to prevailing high interest rates. As of June 30, 2024, Acorn Holdings was the largest unit holder, owning 70.6% of the company.
The early redemption of the green bond will result in the delisting of the notes from the NSE’s Fixed Income Securities Market Segment.
“The notes will be redeemed at an amount equal to the nominal value of the notes, together with accrued but unpaid interest from the preceding Interest Payment Date up to and including the Early Redemption Date,” Acorn said in a notice released on Friday.
“In connection with the early redemption, the Notes will be delisted from the Fixed Income Securities Market Segment of the Nairobi Securities Exchange,” the real estate developer added.
Acorn became the first local outfit to list a shilling-denominated bond on the London Stock Exchange (LSE) in January last year from where it raised Ksh.4.3 billion.