Safaricom Issues Landmark $115 Million Green Bond in Kenya
Safaricom, Kenya’s leading telecommunications provider, has launched the initial phase of its ambitious $308 million domestic medium-term note program, setting a new benchmark as the largest green bond issuance in the country’s history. This first tranche, valued at $115 million, showcases Safaricom’s commitment to sustainable financing and positions it as a leader in environmentally conscious business practices within the rapidly evolving African tech landscape.
Key Features and Investor Benefits
The green bond offering, which opened on November 25th and closes on December 5th, offers investors an attractive tax-free interest rate of 10.4%. Kenyan law exempts interest earned on approved green bonds, allowing investors to benefit fully from the yield. The minimum investment is KSh 50,000, approximately $385, with additional investments accepted in increments of KSh 10,000, equivalent to roughly $77. Safaricom has also incorporated a green-shoe option, which could potentially raise an additional $38 million if the initial demand is surpassed. The funds generated will be allocated to finance and refinance green projects within Safaricom’s sustainability portfolio, reinforcing the company’s environmental objectives while enhancing its financial stability and diversifying its funding sources.
This green bond initiative underscores Safaricom’s dedication to integrating sustainability into its core business strategies and offers a compelling investment opportunity within the burgeoning African market.
Keywords
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