Safaricom PLC has launched the first tranche of its Green Notes under the newly approved Sh40 billion Medium Term Note Programme, advancing the company’s sustainable financing strategy.
The initial tranche is set at Sh15 billion, with a Sh5 billion greenshoe option to meet additional investor demand, the firm announced Tuesday.
The issuance, listed as Tranche Number 01, has been approved following the Capital Markets Authority’s authorisation on November 7, 2025 and Safaricom’s subsequent receipt of approval to issue the first notes under the programme as of November 25, 2025.
Safaricom states that the proceeds will be fully dedicated to sustainability initiatives, noting that the issuer “shall allocate 100 per cent of net proceeds of this Tranche of Notes to finance and/or refinance the portfolio of Eligible Green Projects as described in the Green Project Categories set out under the Sustainable Finance Framework available on Safaricom’s website.”
The 5-year notes are priced at 10.40 per cent per annum, with the company highlighting in briefings that the 5 year notes are priced at 10.40 per cent per annum,” positioning the offer as competitively priced within the corporate debt market.
The notes are classified as senior and unsecured, and will be listed on the Nairobi Securities Exchange upon completion of the allotment process.
According to the issuance schedule, the offer opened at 8:00 am on November 25, 2025, and Safaricom confirms that it “runs from November 25 to December 5, 2025, with allotment on December 8 and listing on December 16.”
The minimum subscription size is set at Sh50,000, with required increments of Sh10,000 thereafter, making the notes accessible to a wide pool of retail, institutional, and high-net-worth investors.
The status of the notes is clearly defined in the announcement, “Senior, unsecured.”
The notes will be issued in registered form through the Central Bank of Kenya’s CSD system, with no physical certificates issued.
Safaricom also notes that the issuance is restricted geographically, stating, “The Note is restricted, and none of the Notes will be available for sale in any jurisdiction other than Kenya.”
This ensures compliance with foreign securities laws while concentrating the offer within the Kenyan market.
The key selling dates outlined include the offer opening, closing, and investor allocation milestones.
Investors may submit applications through receiving banks and placing agents between November 25 and December 5, before allotment on December 8 and eventual listing on December 16, 2025.
The joint lead arrangers for the transaction are Standard Bank Kenya Limited and SBG Securities Limited.
Placing agents include Stanbic Bank Kenya Limited, Standard Chartered Bank Kenya Limited, and other participating banks.
The sponsoring broker is SBG Securities Limited, while the legal adviser is Coulson Harney LLP.
Safaricom describes the Green Notes as part of its long-term funding strategy to back environmentally aligned investments across network infrastructure, renewable energy, and climate-resilient digital systems, all under its Sustainable Finance Framework.
While the company did not expand on specific projects in this announcement, it emphasises that all allocations will strictly follow its published criteria for eligible green investments.
As the offer progresses, market analysts will be watching investor appetite closely, especially with the inclusion of the Sh5 billion greenshoe option, an indicator that Safaricom is prepared for potentially strong demand.
The upcoming listing on the NSE on December 16 is expected to bring additional visibility and liquidity for the Green Notes.
