The Higher Education Loans Board (HELB) is set to borrow Sh22 billion through a bond to fund the acquisition of laptops for university students.
HELB CEO Charles Ringera said the board’s plan to issue its first social bond has been approved by the Treasury and the Capital Markets Authority (CMA).
“Initially we estimated this to be Sh5.5 billion. However, looking at the application of these funds, which is to finance students to acquire laptop loans for purposes of e-learning, we estimate this now at Sh22 billion,” Ringera said as quoted by Business Daily.
He added: “The current university enrolment is at 700,000. Only 20 percent of these students have laptops, leaving over 560,000 in need of laptops. At a price of Sh45,000 for a reasonable laptop, then you can now see the actual demand – but we could start this progressively by issuing these in tranche notes.”
HELB said it has secured a sovereign guarantee from the government for the bond and is currently seeking a transaction adviser for the issuing of the bond.
Ringera said the bonds can be backed up by the agency’s current assets which are worth an estimated Sh110 billion. The bonds will target specific investors including pension funds and social impact investors.
