KCB Group, Kenya's largest lender by assets, has unveiled a sustainability bond framework of up to KSh 300 billion, or approximately USD 2.3 billion, to be executed over five years, with proceeds ring-fenced for a mix of green, blue and social projects. The Nairobi-based bank announced the framework on 19 August; the note programme itself still requires regulatory approval.
The framework has received a Sustainability Quality Score of SQS2 ('Very Good') from Moody's, KCB said.
GREEN, BLUE AND SOCIAL SCOPE
Proceeds will be ring-fenced for eligible green, blue and social projects in areas such as renewable energy, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing, MSMEs, women- and youth-led enterprises and employment and livelihood creation.
The framework sets out how KCB will select, track and report on projects funded through green, blue, social and sustainability-linked bonds.
Blue categories, drawn from IFC guidance, include sustainable water and wastewater management, responsible fisheries and aquaculture, low-emission shipping and habitat restoration.
MOODY'S SQS-2 ASSESSMENT
SQS2 is the second-highest score on Moody's five-point scale.
KCB said the framework has two tracks: use-of-proceeds bonds and loans, and sustainability-linked bonds and loans.
The first tranche is capped at KSh 100 billion, which KCB targets raising by October 2026, Business Daily reported. KCB said the bond offer is subject to relevant regulatory approvals.
Group CEO Paul Russo said at the launch: "The true measure of sustainable finance is not the size of the bond, but the scale of the impact it creates."