KMRC Bond Oversubscribed 312% as Investors Chase Affordable Housing Yield
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Demand for Kenya’s affordable housing finance just exploded, with KMRC’s latest bond attracting over three times the amount it sought. The oversubscription signals strong investor appetite for long-term, stable returns in the housing sector.
The Kenya Mortgage Refinance Company (KMRC) has raised KSh 3 billion through its second tranche of its medium-term note programme, attracting bids worth about KSh 9.38 billion. The strong demand represents an oversubscription of more than 300%, highlighting robust investor confidence in housing-linked financial instruments.
The eight-year sustainability bond, structured under KMRC’s funding programme, carries a 12.2% coupon and is designed to refinance eligible green and social mortgage loans across Kenya. Funds will be deployed through partner financial institutions to expand access to affordable housing finance.
The issuance reflects improving market conditions as interest rates ease and institutional investors seek secure, long-term assets tied to essential economic sectors like housing. Analysts say such oversubscription levels indicate growing confidence in Kenya’s mortgage refinancing model despite earlier delays in issuance.
Looking ahead, KMRC’s performance will be closely watched as it continues scaling its funding programme under its KSh 10.5 billion medium-term note framework.