Transaction

BURN Manufacturing - US$10m green bond (Oct 2023)

Terms

Announced: 27 Oct 2023
Instrument: Debt · BondDebt sold to investors as a security, rather than lent by a bank.
Amount: US$10.0mReported as US$10 million (Sh1.5bn)
Source: burnstoves.com

Project developer: BURN Manufacturing
Recipient type: Technology company
Country: Kenya
Capital providers: Capital providers and the amount counted for each
Party Role Amount Basis
Bond investors (misc) Bond investor US$10.0m Sole provider: the whole transaction
Arranged by: Arrangers and what each arranged
Party Role Arranged Basis
DRY Associates Arranger US$10.0m Sole arranger: the whole transaction

Capital providers and the amount counted for each
Party	Role	Amount	Basis
Bond investors (misc)	Bond investor	US$10.0m	Sole provider: the whole transaction

Arrangers and what each arranged
Party	Role	Arranged	Basis
DRY Associates	Arranger	US$10.0m	Sole arranger: the whole transaction

: BURN Manufacturing issued Sub-Saharan Africa's first green bond designated for clean cooking financing, announced from Nairobi on 27 October 2023: US$10 million of notes issued by way of a private offer to a select group of institutional and qualified investors, with an Information Notice provided to the Capital Markets Authority and no exchange listing. The initial target was a US$5 million bond, which was oversubscribed to US$10 million (FSD Africa). DRY Associates acted as placement agent and transaction advisor, Agusto & Co provided the second-party opinion as approved verifier under the Climate Bonds Standard, and FSD Africa gave technical guidance on the bond framework and funded the independent environmental certification. Proceeds increase existing manufacturing capacity in Kenya and fund a second manufacturing hub in Lagos, Nigeria (biomass, electric and LPG stoves), lifting monthly output from 400,000 to 600,000 units and extending benefits to a further 2 million households in 2024. Noteholders are not named; tenor and coupon are not published.

: - The first green bond for clean cooking in sub-Saharan Africa: US$10m of notes placed privately with institutional investors, double an initial US$5m target, and verified by Agusto & Co under the Climate Bonds Standard. - FSD Africa supplied technical guidance and funded the independent certification, and the proceeds fund a second hub in Lagos that lifts monthly output from 400,000 to 600,000 stoves.

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