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Ruto rings the bell to mark listing of Linzi FinCo’s Sh44.7 billion bond to finance Talanta Sports Stadium
President says the move 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
President William Ruto has rung the bell signaling listing of the Linzi 003 Infrastructure Asset-Backed Security (IABS) at the Nairobi Securities Exchange (NSE) about three weeks after it was oversubscribed raising over Sh44 billion.
Describing it as a historic milestone in the country, Ruto said it confirms confidence in market-based financing and demonstrates how the government can sustainably fund large-scale infrastructure through the financial markets.
“The successful origination, structuring, and listing of the Linzi 003 Infrastructure Asset-Backed Security, the first of its kind in Kenya, raising over Sh44 billion, is a landmark achievement. It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets,” he said.
The proceeds from this listing will support the construction of the world-class 60,000-seater Talanta Sports City Stadium, which the President said will redefine the country’s global reputation as a sporting powerhouse.
The arena is one of the venues targeted for hosting the 2027 African Cup of Nations (Afcon), which is earmarked for Kenya, Uganda and Tanzania, which are also cohosting next month’s African Nations Championship from August 2-30.
“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.”
The Linzi FinCo 003 Trust issued bond in secured notes under the IABS programme, backed by future revenues from the Sports, Arts and Social Development Fund (SASDF) and are secured by assigned receivables, an escrow account, and a standby letter of credit, carrying a fixed interest rate, and listed on NSE’s Restricted Fixed Income Market.
It targets qualified investors under the Capital Markets Act and enjoys tax exemptions on interest income, with government safeguards to cover any SASDF shortfalls.
This issuance of the bond was structured by Liaison Financial Services, KCB Investment Bank, CPF Capital, Ernst & Young and KN Law LLP ensuring regulatory compliance and investor protection.
Ruto also hailed the he Sh3 billion Sharia-compliant Linzi Sukuk which will support affordable housing and the recently-listed Satrix MSCI World Feeder Exchange-Traded Fund (ETF), which offers investors access to global equities.
