The Linzi FinCo 003 Trust issued
the Sh44.79 bond in secured notes under the IABS programme, backed by
future revenues from the Sports, Arts and Social Development Fund
(SASDF).
The notes 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.
NSE chairman Kiprono Kittony (left), Cabinet Secretaries Soipan Tuya (Defence), John Mbadi (Treasury), with President William Ruto and other officials from Linzi FinCo during the bell-ringing ceremony at NSE on July 23, 2025/PCS
LINZI FinCo Trust has successfully issued a groundbreaking Sh44.7 billion Infrastructure Asset-Backed Security (IABS) on the Nairobi Securities Exchange (NSE).
The landmark issuance now sets a new precedent for using capital markets to sustainably finance major infrastructure developments.
President William Ruto presided over the bell-ringing ceremony and celebrated the listing, noting it marks the first of its kind in Kenya.
“It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets,” he stated.Ruto noted that proceeds from the bond will directly support the construction of the Talanta Sports City stadium in Nairobi, Kenya’s first large-scale, purpose-built international stadium project in over four decades.
“This feat joins our pioneering innovations such as the Government-to-Government (G-to-G) fuel supply programme and our asset-backed infrastructure securitisation that has raised Sh175 billion off-balance sheet,” Ruto said.
He added that these initiatives are gradually reducing borrowing costs and strengthening the country’s economic resilience.
The Talanta Sports City Stadium, set to host AfCON, will have a seating capacity of 60,000, redefining the country’s sporting infrastructure since the last major stadium, Moi International Sports Centre Kasarani, was completed in 1987.
The Linzi FinCo 003 Trust issued the Sh44.79 bond in secured notes under the IABS programme, backed by future revenues from the Sports, Arts and Social Development Fund (SASDF).
The notes 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.
The offer 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 was structured by Liaison Financial Services, KCB Investment Bank, CPF Capital, Ernst & Young, and KN Law LLP, ensuring regulatory compliance and investor protection.
Ruto added that the listing not only signals deeper capital markets but also showcases the innovation and sophistication driving the country’s financial solutions.
He said this reinforces the country’s ability to finance critical infrastructure from domestic capital and reduce dependency on external borrowing.
He also commended the NSE for facilitating three listings in a single month, noting this momentum reflects renewed energy, strong leadership, and strategic clarity.
