Financial services provider Standard Bank has partnered with global advisory firm MiDA Advisors and real estate developer Acorn Holdings to mobilise long-term blended finance commitments for green and affordable student housing in Kenya.
The transaction will comprise up to $180-million in financing from the US Development Finance Corporation, which should help to secure $380-million more financing arranged jointly by Stanbic Bank Kenya – a member of Standard Bank Group – and MiDA.
The companies will also source $315-million in financing from Kenyan capital markets.
Overall, the partners aim to raise $700-million in total blended finance over an 18-year timeframe, which will enable the construction of 35 certified green housing projects.
The projects will result in 48 000 new student beds being built over the next ten years, alleviating the shortage of quality and affordable accommodation for tertiary students in Kenya.
The deal marks the single-largest student housing investment in Africa and will create about 15 000 direct jobs and 35 000 indirect jobs.
Standard Bank is committed to driving Africa’s socioeconomic development, with the latest transaction aligning with the group’s facilitation of sustainable investment on the continent,
The group aims to raise between R250-billion and R300-billion in sustainable finance by the end of 2026.
Standard Bank was instrumental in bringing the first-ever green bond to East Africa, with the help of Acorn, for the development of environment-friendly student housing in Nairobi.