Safaricom’s KSh 40 Billion Green Bond Initiative Set to Bolster Kenya’s Corporate Debt Market
Safaricom PLC has recently launched its KSh 40 billion Domestic Medium-Term Note (DMTN) programme, a strategic financial move designed to fund or refinance projects that align with the company’s Sustainable Finance Framework. This significant initiative not only underscores Safaricom’s commitment to environmental sustainability but also marks a pivotal step towards enhancing and deepening Kenya’s domestic corporate debt market.
# Diving into the Details of Safaricom’s Sustainable Financing Program
This comprehensive DMTN programme provides Safaricom with the flexibility to issue various types of bonds over time, including green, social, and sustainability-linked instruments, structured in multiple tranches. The initial phase of this ambitious programme introduces a KSh 15 billion “Green Bond,” which includes an additional KSh 5 billion greenshoe option, demonstrating strong market confidence. This inaugural tranche offers an attractive fixed, tax-exempt interest rate of 10.4% over a five-year term, making it accessible to both retail and institutional investors. The minimum subscription is set at KSh 50,000, with top-ups available in increments of KSh 10,000. Safaricom emphasized the strategic rationale behind this move, stating, “Through this MTN programme, we aim to diversify funding sources, reduce reliance on short-term or foreign-currency debt, and support long-term growth, including infrastructure expansion and sustainable operations.” This aligns with the broader goal of strengthening Kenya’s financial landscape by providing more sophisticated investment opportunities and robust corporate financing mechanisms.
Safaricom’s issuance of these sustainable bonds is a testament to its forward-thinking approach, aiming to secure long-term capital while simultaneously fostering environmentally responsible growth. By offering diverse investment avenues, the company is not only managing its own financial health but also contributing significantly to the maturity and resilience of Kenya’s corporate debt market, paving the way for future green financing initiatives within the region’s tech and infrastructure sectors.
Keywords
Related Keywords: Safaricom bond, Kenya corporate debt market, Safaricom 40B bond, Kenya debt market, Corporate bond Kenya, Safaricom corporate bond, Kenya capital markets, East Africa finance, Safaricom investment, Kenyan financial market news
