The Nairobi Securities Exchange (NSE) has listed a Ksh44.7 billion Infrastructure Asset-Backed Security (IABS) issued by LINZI FinCo Trust to fund the construction of Talanta Sports City, a planned 60,000-seat stadium earmarked for the 2027 Africa Cup of Nations (AFCON).

Known as Linzi 003, the listing represents the largest infrastructure-backed transaction in the history of the bourse and signals Kenya’s growing reliance on domestic capital markets to finance major development projects.

President William Ruto, speaking at the bell-ringing ceremony at the NSE trading floor, hailed the transaction as a “landmark achievement” and a pivotal step in advancing market-driven development financing.

“The successful origination, structuring, and listing of the Linzi 003 Infrastructure Asset-Backed Security, the first of its kind in Kenya, raising over Ksh44 billion, is a landmark achievement,” said the President.

“It affirms our confidence in market-based financing and demonstrates how we can sustainably fund large-scale infrastructure through our capital markets.”

The funds raised through the security will go directly into the construction of Talanta Sports City, which is part of Kenya’s broader infrastructure plan in preparation to co-host AFCON 2027 alongside Uganda and Tanzania.

The planned stadium is expected to meet international standards for hosting global tournaments and will also serve as a centre for local sports development and talent incubation.

This IABS is structured as a true-sale securitisation, backed by receivables from the government’s Sports, Arts and Social Development Fund.

Additional investor protection features include the establishment of a Debt Service Reserve Account—an escrow arrangement that ensures at least three months’ worth of payment obligations are covered—and a standby letter of credit to further guarantee scheduled payments to note holders.

Exempt from tax

In a move likely to attract further interest from institutional investors, the bond’s interest income will be exempt from withholding tax, improving its post-tax returns relative to other instruments.

President Ruto said the Nairobi Securities Exchange has accelerated financial innovation and enabled access to new asset classes.

The listing of the Linzi 003 note is one of three major transactions facilitated by the exchange in July alone.

Others include the Ksh3 billion Sharia-compliant Linzi Sukuk supporting affordable housing, and the Satrix MSCI World Feeder Exchange-Traded Fund (ETF), which allows local investors to access global equity markets.

“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,” said the President.

He added that Kenya’s wider financial strategy—including use of asset-backed securities and efforts to diversify currency exposure—is aimed at reducing reliance on external debt and lowering borrowing costs in the long term.

The Talanta Sports City project is one of the country’s flagship preparations for AFCON 2027.

It’s financing via securitisation marks a break from the traditional model of debt-heavy government spending, and will be closely watched as a model for future infrastructure deals.