By Michelle Ndaga
Safaricom Plc has launched its first tranche of KSh 15 billion fixed-rate Green Notes, marking a significant step in the company’s sustainability financing strategy.
The issuance is part of a broader KSh 40 billion Domestic Medium-Term Note (MTN) programme approved by the Capital Markets Authority (CMA), allowing the company to raise funds for green, social, and sustainability-linked projects.
The green notes carry a 10.40% annual interest rate over a five-year period and are set to be allotted on 8 December 2025, with trading on the Nairobi Securities Exchange (NSE) expected to begin on 16 December 2025.
The bond includes a KSh 5 billion greenshoe option to increase the issue if investor demand is strong.
Safaricom has committed that all proceeds from the bond will be used exclusively to finance or refinance eligible green projects under its Sustainable Finance Framework.
The funds are expected to support initiatives in renewable energy, energy efficiency, and sustainable infrastructure, reinforcing the company’s commitment to environmental stewardship and climate resilience.
The company has previously implemented several climate-focused initiatives, including planting 1.3 million indigenous trees in partnership with the Kenya Forest Service, with a target of five million trees by 2025, and aims to achieve net zero emissions by 2050.
Both institutional and retail investors are eligible to participate, with a minimum subscription of KSh 50,000.
Leading Kenyan banks, including KCB, NCBA, Stanbic, Co-operative Bank, ABSA, DTB, Family Bank, and I&M, are participating as collecting agents.
The Domestic MTN Programme gives Safaricom the flexibility to issue additional tranches of green, social, or sustainability-linked notes up to KSh 40 billion, supporting future projects aligned with its climate and sustainability goals.
