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The full subscription of the Sh44.8 billion bond means the government now has the funds to fast-track the completion of Talanta Sports City ahead of AFCON 2027.
The Kenyan government has hopes of completing the Talanta Sports City in time to host the 2027 Africa Cup of Nations following the recent milestone.
As reported by Business Daily, the Sh 44.79 billion infrastructure bonds backing the construction of the stadium have been fully subscribed, exceeding their target and raising Sh 44.875 billion.
It was further reported that the entire amount was raised from Kenyan investors, and the bond, issued by Linzi Finco, offers a 15.04% annual return over 15 years.
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The bond will be listed on the Nairobi Securities Exchange on July 8, 2025, within the restricted fixed-income market. Linzi Finco confirmed the oversubscription in a statement, indicating that investors will be allotted bonds on a pro rata basis.
“Following the closing of the offer period on June 30, Linzi FinCo is pleased to announce that it received applications for securities amounting to Sh44,875,600,000 against the target of Sh44,791,000,000. Investors will be allotted on a pro rata basis,” Linzi Finco said in a statement.
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![Government Provides Update Over Talanta Sports City Progression Ahead of AFCON 2027 [PHOTOS]](https://sportal365images.com/process/smp-images-production/ringier.africa/22052025/9855458f-c92f-4ae6-8c0d-be70c0c04c6a.jpg?operations=fit(480:))
This successful subscription will allow the government to pay the contractor, China Road and Bridge Corporation, for completed work and accelerate the project's progress.
As of the end of April, the 60,000-seat stadium was 37% complete, with the contractor continuing work despite receiving only 5% of the total construction payment.
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The Ministry of Defence oversees the project, appointed by President William Ruto, thanks to its reputation for efficient execution.
Sports Kenya owns the project, with the Sports, Arts and Social Development Fund (SASDF) as the originator. SASDF, established under the 2018 Public Finance Management Regulations, has been allocated Sh13.5 billion for the upcoming financial year.
How the Bond Works
The bond carries a premium package compared to other 15-year infrastructure bonds, which currently offer returns of around 13%.
Principal and interest payments will be made semi-annually, with the principal repaid in equal instalments of approximately Sh2.98 billion per year.
South African agency GCR Ratings assigned the bond an AA rating, indicating very strong creditworthiness, but the lack of an explicit government guarantee prevented a higher rating.
However, investors were undeterred, attracted by the premium and the structure, which includes a standby letter of credit from Kenya Commercial Bank in case of delayed payments.
Should the Sports Fund be dissolved, the claims of those who hold the bonds will be transferred to the National Exchequer Account, and the repayments will come from National Treasury disbursements to the SASDF, not from stadium revenues.
The bond's listing on the restricted segment excludes retail investors due to the complexity of the instrument and the need for liquidity in such investments.
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