Safaricom’s first tranche of its Medium-Term Note green bond drew Sh41.6 billion in bids, surpassing the Sh15 billion target by 175.7 percent.
The company will take up the full Sh5 billion greenshoe, bringing the tranche allocation to Sh20 billion, while Sh21.4 billion will be refunded to investors in line with the allotment terms outlined in the Information Memorandum.
CEO Peter Ndegwa, on Tuesday, December 9, 2025, highlighted that the strong uptake reflects investor confidence in the company’s performance and strategic direction.
He stated, “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. We made a deliberate decision to diversify our funding sources, and this outcome affirms this choice.”
The proceeds from the green bond are earmarked for projects aimed at enhancing operational efficiency, reducing environmental impact, and strengthening Safaricom’s business infrastructure.
Among the initiatives funded by the bond will be investments in renewable energy, including the expansion of solar power across more base transmission stations, as well as improvements in power management systems to reduce overall energy consumption.
On the importance of the greenshoe option, Ndegwa said, “Taking up the greenshoe option allows more investors to participate in Safaricom's growth, rather than locking them out. We are pleased to provide a broader range of investment opportunities as the company continues to expand.”
He extended gratitude to investors, transaction advisers, the Capital Markets Authority, and stakeholders whose support enabled the successful issuance of Tranche 1.
The green notes are scheduled to begin trading on the Nairobi Securities Exchange on Tuesday, December 16, 2025, providing investors with liquidity and a platform for trading.
The five-year fixed-rate note, priced at 10.4 percent, will pay interest semi-annually in June and December.
A significant attraction for investors is that the returns are fully tax-exempt, thereby enhancing the effective yield on investment.
Safaricom’s green bond is part of the company’s broader strategy to diversify funding sources and strengthen its commitment to sustainable investments.
By focusing on projects that reduce environmental impact and improve energy efficiency, the company aims to align its financial growth with broader sustainability objectives.
The oversubscription reflects strong market confidence in Safaricom’s financial stability and long-term prospects.
Investors have shown keen interest in participating in projects that are environmentally conscious while offering tax-exempt, attractive returns.
Tranche 1 of the Medium-Term Note demonstrates Safaricom’s ability to tap into innovative financial instruments to support both corporate growth and sustainability goals.
Ndegwa emphasized that the bond issuance will allow the company to expand solar power infrastructure and improve energy management, contributing to more efficient operations across its network.
With the green bond fully allocated and set to trade next week, Safaricom has successfully positioned itself as a market leader in sustainable financing in Kenya.
The issuance reaffirms the company’s commitment to providing investors with growth opportunities while supporting renewable energy and operational efficiency initiatives.
As the green notes become tradable on the NSE, investors and stakeholders will closely monitor the performance of the bond and the impact of the funded projects on Safaricom’s operations and sustainability footprint.
