Moody’s Ratings has assigned Centum Real Estate Limited’s green bond framework its highest Sustainability Quality Score, SQS1, citing strong alignment with international green bond principles and the company’s plans to finance eligible green projects.

In an assessment dated Aug. 19, Moody’s said the Centum Real Estate green bond framework demonstrated an “excellent” sustainability quality score and was aligned with the four core components of the International Capital Market Association’s Green Bond Principles 2025.

The assessment covers the framework dated January 2026, under which Centum Real Estate, a wholly owned subsidiary of Centum Investment Company Plc, plans to issue use-of-proceeds instruments to finance projects in four eligible green categories.

Moody’s said its assessment was based on the updated framework it received on Aug. 19 and represented a point-in-time opinion on information contained in the framework, together with other public and non-public information provided by the company.

The rating agency said the framework’s overall alignment with the Green Bond Principles was assessed as “best practices” across the areas of use of proceeds, evaluation and selection of projects, management of proceeds and reporting.

Moody’s also assessed the framework’s contribution to sustainability as “high”, based on the relevance and magnitude of the expected environmental benefits from the projects to be financed.

The SQS1 score is the highest level in Moody’s Sustainability Quality Score scale. The scale ranges from SQS5, described as weak, through intermediate, good and very good to SQS1, described as excellent.

A key feature of the Centum Real Estate green bond framework is its focus on eligible green buildings, with Moody’s highlighting the issuer’s commitment to conduct life-cycle assessments on all eligible buildings financed through the framework.

Life-cycle assessment considers environmental impacts associated with a building over different stages of its existence, including construction, use and eventual end-of-life.

Moody’s also cited Centum RE’s commitment to obtaining independent verification of impact reporting on the environmental benefits associated with financed projects.

The rating agency said this independent verification, together with the framework’s alignment with relevant market practices, strengthened its assessment of the company’s approach to green financing.

Centum RE has previously worked with the International Finance Corporation on the adoption of green building standards. The company has said it aims to expand the use of EDGE, or Excellence in Design for Greater Efficiencies, certification across its portfolio.

The company’s sustainability initiatives include resource-efficient real estate projects and the use of measures such as renewable energy where feasible. Centum has also reported green building certifications within its property portfolio.

Despite the strong overall assessment, Moody’s identified one challenge in the framework.

The agency said the climate change adaptation category, although highly relevant, lacked detailed criteria. It said this limited the category’s overall expected impact.

The observation means that while the framework received the highest overall sustainability quality score, Moody’s did not consider every component equally detailed in its potential environmental contribution.

Moody’s assessment was not a credit rating and did not announce a credit rating action.

The opinion instead evaluates the sustainability characteristics of the green bond framework and the extent to which it aligns with relevant principles and contributes to sustainability objectives.

Centum Real Estate is the real estate development arm of Centum Investment Company Plc, an East African investment company listed on the Nairobi Securities Exchange and Uganda Securities Exchange.

The company develops large-scale, master-planned mixed-use urban developments across Kenya and Uganda.

Its portfolio includes Two Rivers in Nairobi, Vipingo Development in Kilifi County and Pearl Marina in Entebbe, Uganda. Centum describes its real estate strategy as the development of large urban nodes designed to attract investment and commercial activity.

The company has also attracted institutional financing for housing developments. In 2023, the IFC disclosed an investment of up to $20 million in Centum Real Estate to support the development of 1,940 affordable housing units at Two Rivers in Nairobi. The IFC said the financing would also support the adoption of green building standards and EDGE certification.

Centum’s earlier debt-market activity has included a secured medium-term note programme used to finance real estate development. Its previous three-year zero-coupon bond was settled in November 2023, according to the company’s integrated report.

The latest Centum Real Estate green bond framework comes as sustainable finance continues to develop in Kenya’s capital markets, with green bonds being used to channel private capital towards environmentally sustainable projects.

Kenya has seen increased activity in green debt markets in 2026. For example, Kenya Mortgage Refinance Company set a 12.2% fixed coupon for a Ksh 3 billion green bond in April, as part of a larger Ksh 10.5 billion programme.

For Centum RE, Moody’s SQS1 assessment provides an external evaluation of the sustainability credentials of its framework but does not guarantee the environmental performance of individual projects or the financial performance of any securities issued under it.

The assessment also does not constitute an endorsement of any future securities issuance. Moody’s said its opinion reflected information available at the time of assessment and could differ if the framework or relevant information changes.