Safaricom Green Bond has attracted applications worth KES 41.6 billion for the first tranche of its Medium-Term Note [MTN] programme. marking a major vote of confidence from Kenya’s capital markets. The offer was oversubscribed by 175.7%, far above the initial KES 15 billion target.
Due to the strong demand, Safaricom will take up the full KES 5 billion greenshoe option. This brings total allocations for this tranche to the maximum KES 20 billion approved. As a result, the company will refund KES 21.4 billion to investors. In line with terms set out in the Information Memorandum.
Chief Executive Officer Peter Ndegwa said investors’ response shows strong trust in the company’s stability and long-term 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. He added that the outcome validates Safaricom’s decision to diversify its funding sources.
Safaricom Green Note Support Projects
Funds from the green note will support projects aimed at improving efficiency and cutting environmental impact. Key areas include expanding renewable energy use across base transmission sites, upgrading systems to improve power management and reducing overall energy consumption.
Ndegwa said the decision to activate the greenshoe option ensures broader investor participation. “Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out,” he added.
Safaricom will list the notes and begin trading them on the Nairobi Securities Exchange on Tuesday, December 16. The company will pay interest on the five-year fixed-rate note, priced at 10.4%, twice a year in June and December. The fully tax-exempt return boosts the effective yield and is likely to appeal to investors.
The Safaricom Green Bond oversubscription signals sustained appetite for quality corporate paper in Kenya and shows the growing interest in green-aligned investments across the region.
