NAIROBI, Kenya, Nov 25 – Safaricom has rolled out the first Sh15 billion tranche of its Sh40 billion Domestic Medium-Term Note Programme, issuing the debut instalment as a tax-exempt green bond.
The firm also has the option to raise an additional Sh5 billion if the offer is oversubscribed.
The proceeds will be used to finance or refinance eligible green projects, in line with Safaricom’s sustainability commitments.
Under Kenyan law, interest earned on green bonds is tax-free, allowing investors to receive the full return.
Safaricom CEO Peter Ndegwa said the issuance supports the company’s long-term strategy and sustainability agenda.
The offer will run from November 25 to December 5 at a tax-exempt interest rate of 10.4 percent. Investors can participate from a minimum of Sh50,000, with top-ups in increments of Sh10,000. Applications are available via USSD, online, or through licensed stockbrokers.
Group Chief Finance Officer Dilip Pal said the issuance strengthens Safaricom’s funding base and enables the firm to tap deeper into the domestic debt capital market.
He noted the bond is Kenya’s largest green bond to date and the first to allow mobile-based subscriptions.
SBG Securities, Stanbic Bank Kenya, and Standard Chartered Bank Kenya arranged the issuance, with the three firms — alongside Dyer & Blair Investment Bank — acting as placing agents.
