Safaricom’s latest fundraising effort has delivered a powerful market signal after the Safaricom Green Bond attracted KES 41.6 billion in investor applications more than double the initial KES 15 billion target underscoring deep confidence in the company’s long-term strategy and sustainability agenda.
Strong Demand Underscores Investor Confidence in Safaricom Green Bond
The first tranche of the Medium-Term Note has recorded a 175.7% oversubscription, prompting the company to activate the full KES 5 billion greenshoe option. This brings total allocations to the maximum KES 20 billion allowed for the tranche.
As a result, Safaricom will refund approximately KES 21.4 billion to investors due to overwhelming demand for the Safaricom Green Bond a level of appetite rarely witnessed in the local market.
Safaricom CEO Peter Ndegwa said the response reflects investors’ trust in the company’s financial health and its strategic direction.
“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. We made a deliberate decision to diversify our funding sources, and this outcome affirms this choice,” Ndegwa said.
He added that taking up the greenshoe option ensures more investors are able to participate rather than being crowded out by the runaway demand for the Safaricom Green Bond.
Green Funding to Accelerate Renewable Energy Investments
Proceeds from the note will finance projects aimed at enhancing operational efficiency, reducing environmental impact, and modernising the network. Priority areas include expanding solar power across Safaricom’s base transmission stations, improving power management systems, and cutting overall energy consumption.
Ndegwa said the green-focused financing structure aligns with the company’s long-term sustainability commitments.
“I would like to thank all investors, our transaction advisers, the Capital Markets Authority and all stakeholders whose support has made the successful issuance of Tranche 1 possible,” he said.
Listing and Investor Benefits
The Safaricom Green Bond will be listed and begin trading on the Nairobi Securities Exchange on Tuesday, December 16.
The five-year fixed-rate note is priced at 10.4% and will pay interest semi-annually in June and December. One of its strongest selling points and a key reason for the high uptake is that returns on the note are fully tax-exempt, significantly boosting investors’ effective yield.
With such overwhelming interest, the Safaricom Green Bond has cemented its place as one of the most successful corporate debt issuances in recent years, highlighting the growing investor appetite for sustainable, impact-driven financing in Kenya.
Read Also: Safaricom Unveils KSh15 Billion Tax-Exempt Green Bond Under Its KSh40 Billion Note Programme
