Safaricom has attracted KES 41.6 billion in applications for the first tranche of its Medium Term Note, marking a significant oversubscription of 175.7 percent against the initial KES 15 billion target. Due to the strong demand, the company will take up the full KES 5 billion greenshoe option, raising the total allocation to KES 20 billion, which is the maximum approved for the tranche.
As outlined in the Information Memorandum, Safaricom will refund KES 21.4 billion to investors who were not fully allotted. The note is classified as a green bond and is designed to support environmentally aligned investments and operational efficiencies.
Chief Executive Officer Peter Ndegwa said the strong investor appetite demonstrates confidence in the company’s long term performance and growth strategy. He noted that diversifying funding sources has been a considered move to strengthen stability and accelerate strategic investments.
Proceeds from the issuance will go towards renewable energy initiatives such as expanding solar power across base stations, improving power management systems and reducing overall energy consumption in operations. Safaricom said these investments align with its sustainability goals while enhancing operational reliability.
The green notes will be listed and begin trading on the Nairobi Securities Exchange on Tuesday, December 16. They carry a fixed interest rate of 10.4 percent, with semi annual interest payments in June and December. The tax exempt status of the return has been highlighted as a key attraction for investors.
