BURN Manufacturing, the world’s leading clean cookstove manufacturer, distributor, and carbon-offset project developer, has successfully issued Sub-Saharan Africa’s inaugural green bond for clean cooking financing, raising USD $10 million.
Driving Clean Cooking Solutions
The proceeds from this historic green bond will empower BURN to expand its existing manufacturing capacity in Kenya and inaugurate a new manufacturing facility in Lagos, Nigeria. This expansion will elevate production from the current 400,000 units per month to 600,000 units, encompassing a range of life-saving biomass, electric, and LPG stoves.
BURN’s cookstoves have received independent verification from reputable institutions such as the University of Pennsylvania and the University of Chicago. A comprehensive impact assessment survey conducted by Yunus Social Business has consistently affirmed the substantial health, financial, and climate action benefits provided by these stoves. The funds raised through the Green Bond are poised to extend these benefits to an additional 2 million households in the year 2024.
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Advancing Sustainability with Green Bonds
Peter Scott, CEO and Founder of BURN, underlined the company’s commitment to leveraging financial innovation to drive positive environmental and social change. The issuance of a green bond reflects BURN’s strong belief in the potential of green financing, taking advantage of the investment community’s interest in sustainability and the potential tax benefits for investors.
The placement of the bond was supported by DRY Associated Limited as the Placement Agent. FSD Africa, a specialist development agency funded by UK International Development, played a pivotal role in providing technical input on the bond framework and contributing technical assistance for the second-party opinion conducted by Agusto & Co., a leading Pan-African Credit Rating Agency and Green Bond Verifier.
Evans Osano, Director, Capital Markets, FSD Africa, expressed pride in supporting the groundbreaking issuance of the first-ever green bond for financing clean cooking activities in sub-Saharan Africa. He highlighted the positive impact on the environment and health from transitioning to sustainable cooking alternatives, which particularly benefit women.
Ikechukwu Iheagwam, Regional Director (East Africa) at Agusto & Co., commended BURN for its commitment to reducing greenhouse gas emissions and achieving ISO/IWA Tier 4 thermal efficiency ratings for its cookstoves, which signifies their significant environmental impact and compelling social, financial, economic, and health benefits.
Reuben Mabishi, Head of Research from Dry Associates Investment Bank, emphasized the opportunities for fixed-income investments in Kenya to drive capital formation, employment, and economic growth. BURN’s focus on green finance and its scale and professionalism in manufacturing were commended.
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Addressing the Clean Cooking Challenge
The issuance of green bonds presents a vital avenue for addressing the global challenge of shifting people away from dirty cooking fuels and promoting cleaner cooking solutions. A 2022 report by the International Energy Agency on the Africa Energy Outlook emphasizes the need to shift 130 million people globally away from dirty cooking fuels annually to achieve universal access to clean cooking fuels and technologies by 2030.
BURN Manufacturing’s pioneering green bond offering contributes significantly to this vital transition, fostering cleaner cooking solutions for a better quality of life.
Please note that the information provided is based on the details available at the time of the announcement.