NSE shines with Sh44 billion Talanta Stadium infrastructure bond
President William Ruto rings the bell to mark the listing of the Linzi 003 Infrastructure Asset-Backed Security whose proceeds will support the construction of the world-class 60,000-seater Talanta Sports City Stadium.
In a strategy aimed at blending financial innovation with national goals, LINZI FinCo Trust has launched a KES44.7 billion Infrastructure Asset-Backed Security (IABS) on the Nairobi Securities Exchange (NSE).
This initiative aims at raising funds for the construction of Talanta Sports City, a key plank of the country's infrastructure investments in readiness for the 2027 Africa Cup of Nations (AFCON).
Related
South Africa’s Satrix ETF lets local investors trade globally as it lists at NSE
At the bell-ringing ceremony on Wednesday, President William Ruto lauded the bond's listing as a "landmark" transaction, noting that it seeks to harness the power of Kenya’s capital markets while also driving the realization of key infrastructure projects.
“The successful origination, structuring, and listing of the Linzi 003 Infrastructure Asset-Backed Security, the first of its kind in Kenya, raising over KES44 billion, is a landmark achievement,” said Dr. Ruto.
Talanta Sports City is a brand new arena, which is under construction off Ngong Road to a tune of KES44 billion. It is poised to serve as the main stadium for Kenya in the 2027 Africa Cup of Nations (AFCON).
To raise money for the ambitious project, Linzi Finco 003 Trust, a subsidiary of the Pan-African Liaison Group, listed a KES44.79 billion Infrastructure Asset-Backed Security (IABS) on the NSE.
By listing at the Nairobi bourse, investors of Kenya's largest sports project, Talanta Sports City, are poised to earn billions of profits in interest after a tax incentive announced recently by the government.
The government will be exempting the interest income from withholding tax, even as transfers incur no capital gains tax, and no stamp duty will apply on issuance or redemption.
“It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets," explained Dr. Ruto at the floor of the NSE on Wednesday.
Once completed, the 60,000-seater stadium will become an ideal venue for global tournaments while also serving as a regional hub for nurturing sports talent.
“This listing reflects not only the deepening of our capital markets, but also the innovation and sophistication now driving financial solutions that respond to evolving public and private sector needs,” added the President.
LINZI FinCo Trust move adds to recent activity at the bourse following the listing of KES3 billion Sharia-compliant Linzi Sukuk aimed at financing affordable housing investments, and the coming of South Africa's Satrix MSCI World Feeder Exchange-Traded Fund (ETF), which offers local investors access to gain from global equities.
