Safaricom (NSE: SCOM) has launched the first KSh15 billion tranche of its KSh40 billion Domestic Medium-Term Note Programme, with an option to raise an extra KSh5 billion if demand exceeds.
Proceeds from the Green Bond will finance and/or refinance the portfolio of eligible green projects, reinforcing Safaricom’s sustainability agenda. Under Kenyan law, interest earned on these green bonds is tax-exempt, allowing investors to enjoy the full benefit of their returns and maximising value.
Beyond environmental impact, the funds will broaden Safaricom’s funding base, strengthen financial resilience, and fuel strategic investments aligned with its vision to become Africa’s leading purpose-led technology company by 2030.
“This Green Bond underscores our commitment to embedding sustainability at the heart of our business. By adopting innovative financing solutions, we create long-term value for our stakeholders while delivering positive environmental and social impact. This approach will continue to guide our growth, ensuring that every step forward is both purposeful and sustainable,” said Peter Ndegwa, CEO, Safaricom.
The offer runs from 25th November to 5th December at a tax-free interest rate of 10.4%.
Investors can participate with a minimum of KSh50,000 and top up in multiples of KSh10,000. application process is simple via USSD *483*810#, online at www.safaricombond.e-offer.app, or through licensed stockbrokers.
“This transaction marks a major milestone in our strategic financing plans, enabling Safaricom to diversify funding sources and tap into the local debt capital market,” said Dilip Pal, Group Chief Finance Officer.
“As Kenya’s largest green bond issuance, and the first to allow mobile-based subscriptions, it reinforces our commitment to innovation, accessibility, and sustainable growth. The new bond creates a flexible funding framework to support long-term investments in connectivity, fixed broadband, and financial services,” added Dilip.
SBG Securities Limited, Stanbic Bank Kenya Limited, and Standard Chartered Bank Kenya Limited have arranged the green bond. The three, in addition to Dyer and Blair Investment Bank, are also the bond’s placing agents.
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