Safaricom has secured an additional KES 15 billion in a sustainability-linked loan. Bringing its total loan facility to KES 30 billion. The funds will be directed toward advancing the telco’s Environmental, Social, and Governance [ESG] goals. This second tranche follows the closure of a similar loan last year. It marks the largest such facility in the East African region.
The loan, provided by a consortium of four major banks, KCB, ABSA, Standard Chartered, and Stanbic. Will enable Safaricom to scale up its sustainable investments as part of its broader strategy to reduce carbon emissions and promote gender diversity. Safaricom has set a goal to become a Net Zero carbon-emitting company by 2050.
“This deal helps to accelerate the advancement of our sustainability agenda. It is a testament that we have achieved the targets we set out to achieve with the first one where we aligned our sustainability agenda with our financial strategy.” Said Peter Ndegwa, CEO, Safaricom.
Net Zero Carbon Emitting Company by 2050
The facility will help accelerate Safaricom’s transition into a fully-fledged technology company where it seeks to reduce its carbon footprint. It will also enhance its progress on gender diversity and monitor its social impact. The telco plans to be a Net Zero carbon emitting company by 2050 with programmes put in place to achieve this.
“We have tapped into partnerships with key leaders in the region in the latest chapter of sustainability financing. It will improve our accountability measures on ESG reporting. Where we will have an opportunity to attract more investment and growth,” added Mr Ndegwa.
Explore New Safaricom Internet Speeds
“Safaricom is dedicated to making conscious efforts to ensure that our projects and initiatives align with the ESG agenda. This deal highlights our commitment to sustainability and the inherent alignment of our sustainability and financing strategies.” Added Dilip Pal, CFO, Safaricom.
Standard Chartered acted as the Mandated Lead Arranger, Bookrunner, Global Coordinator, and Sustainability Coordinator for the transaction, while KCB, Stanbic Bank Kenya, and ABSA Bank Kenya also played key roles in arranging the facility.
