NAIROBI, Kenya, Oct 27 – Burn Manufacturing, a clean cookstove manufacturer, has announced a Sh1.5 billion ($10 million) green bond to finance clean cooking financing in Kenya and other Sub-Saharan African countries.
Proceeds from the bond will be used to expand BURN’s manufacturing capacity in the country as well as open a new factory in Lagos, Nigeria.
Expansions will increase its monthly production of biomass, electric, and LPG stoves from 400,000 to 600,000.
“Our decision to issue the first green bond to support clean cooking underscores our strong belief in the power of financial innovation to drive positive environmental and social change,” said Peter Scott, CEO and Founder of BURN.
“Leveraging benefits such as investment communities’ interest in green financing and potential tax advantages to investors, green bonds have gained considerable traction in recent years. BURN is excited to deploy this innovative instrument to catalyze sustainable development,” Scott added.
The bond issuance was supported by DRY Associated Limited, acting as the placement agent.
FSD Africa, a specialist development agency funded by UK International Development, provided technical input on the bond framework and contributed technical assistance for the second-party opinion, which was conducted by Agusto & Co., the leading Pan-African Credit Rating Agency and Green Bond Verifier.
“We are proud to have supported this landmark issuance, the first-ever green bond to finance clean cooking activities in sub-Saharan Africa,” Evans Osano, Director, Capital Markets, FSD Africa, said.
“Biomass fuel is the main source of energy for cooking for the majority of households in Africa and the proceeds from this capital raise will support these households to transition to more sustainable alternatives,” Osano stated.
“These are not only better for the environment but also have health benefits from the reduction of particulate and carbon monoxide emissions which particularly impact women given their greater exposure.”
