The Nairobi Securities Exchange Plc (NSE) has admitted the Linzi Sukuk, valued at KES 3 billion, onto its Unquoted Securities Platform (USP), marking the platform’s first Shari’ah compliant product.
The Linzi Sukuk, issued by Linzi FinCo Trust, is an Islamic Secured Residential Lease Based Security with a 15-year maturity period and an internal rate of return of 11.13%. The funds raised through this Sukuk will be directed towards constructing affordable institutional housing, aligning with the Government of Kenya’s agenda on Affordable Housing Program.
The project is anticipated to generate approximately 3,000 direct jobs and tens of thousands of indirect employment opportunities across the nation.
Frank Mwiti, Chief Executive of NSE, emphasized the significance of this milestone, stating, “The admission of Linzi Sukuk on the Unquoted Securities Platform marks a decisive point in broadening Kenya’s capital markets appeal and offering for Shariah-compliant issuers and investors.” He highlighted the potential of Islamic financial instruments in addressing Kenya’s financing needs, particularly in critical sectors like infrastructure, housing, and agriculture.
The Linzi Sukuk issuance represents a significant partnership between the public and private sectors. Tom Mulwa, Managing Director of Liaison Group, the Transaction Advisor and Arranger for the Sukuk, expressed enthusiasm, stating, “This will mark the first Public Private Partnership project to achieve financial close using locally sourced capital.” He also emphasized the contribution of the Sukuk to the growth and diversification of Kenya’s capital markets.
Hosea Kili OGW, Group Managing Director/CEO of CPF Financial Services, the Anchor Investor for the Sukuk, highlighted the ethical and socio-economic significance of the issuance.
“This Sukuk issuance is a strategic milestone that strengthens our investment portfolio while fostering socio-economic development in our communities,” Kili stated. He reiterated CPF Financial Services’ commitment to delivering sustainable value through ethical investments and innovative financial solutions.
The Unquoted Securities Platform (USP) provides an automated solution for the issuance and trading of securities of unquoted companies. Currently hosting the Acorn Student Accommodation Development Real Estate Investment Trust (D-REIT) and the Income Real Estate Investment Trust (I-REIT), the platform facilitates value discovery, capital raising, and trading of securities. With the admission of the Linzi Sukuk, the total number of admitted securities on the USP now stands at three, further enhancing the platform’s role in expanding Kenya’s capital markets.
