Safaricom has attracted applications worth KES 41.6 billion for the first tranche of its new Medium-Term Note programme, marking a significant endorsement of the company’s sustainability-linked financing strategy.
The offering was oversubscribed by 175.7%, far exceeding the mobile operator’s initial target of KES 15 billion and underscoring rising investor appetite for green investments in East Africa.
The company said it would exercise the full KES 5 billion greenshoe option, increasing the total allocation for the tranche to KES 20 billion, in line with the maximum amount approved for the first phase.
As a result of the overwhelming demand, Safaricom will refund KES 21.4 billion to investors who applied but could not be allotted notes due to the oversubscription.
The transaction represents one of the most successful corporate green bond issuances in Kenya’s capital markets, further positioning Safaricom as a regional leader in sustainable financing.
The “Safaricom green bond” is set to begin trading on the Nairobi Securities Exchange (NSE) on Tuesday, 16 December.
Safaricom Chief Executive Officer Peter Ndegwa said the enthusiastic investor response reflected broad confidence in the company’s financial performance, long-term prospects, and corporate strategy.
“We are pleased with the market’s response. It signals confidence not only in our balance sheet, but also in the vision and strategy we are executing,” he said, noting that the firm had intentionally diversified its funding sources. “This outcome affirms that choice.”
The strong uptake aligns with a global trend in which investors are increasingly allocating capital to green and sustainable assets. For Safaricom, the green bond provides long-term funding while reinforcing the company’s environmental sustainability commitments.
Proceeds from the Safaricom green bond will fund projects aimed at improving operational efficiency, reducing environmental impact, and strengthening the company’s network infrastructure. Key initiatives include:
Expansion of solar power installations across Safaricom’s base transmission stations, upgrades to network systems to enhance power management, reduction of overall energy consumption in line with the company’s transition strategy
These investments are expected to help Safaricom lower operating costs, reduce its carbon footprint, and improve service reliability for its more than 40 million subscribers.
The focus on solar-powered network infrastructure aligns with Kenya’s broader ambition to accelerate the adoption of renewable energy in critical sectors.
Safaricom has previously indicated that shifting a larger share of its network to clean power sources is a priority as it seeks to reduce reliance on diesel generators and grid electricity.
The company said activating the greenshoe option would enable more investors to join the programme rather than be excluded by the heavy demand.
“We are pleased to provide a broader range of investment opportunities as the company continues to expand,” said Mr Ndegwa, who thanked investors, the Capital Markets Authority, transaction advisers and other stakeholders involved in the successful issuance.
The five-year note carries a fixed coupon rate of 10.4%, payable semi-annually in June and December. Safaricom highlighted that the return is fully tax-exempt, which reduces the effective yield for investors and adds to its attractiveness.
The bond listing on the NSE is expected to deepen Kenya’s capital markets by increasing the pool of sustainable investment instruments and demonstrating investor confidence in environmentally linked debt.
Safaricom’s successful green bond follows a growing trend of sustainability-linked capital raising across Africa, driven by a mix of regulatory support, investor demand, and corporate commitments to environmental, social and governance (ESG) standards.
In Kenya, green financing has gained momentum as both private companies and public institutions seek funding for renewable energy, energy efficiency and climate-resilient infrastructure.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any