Safaricom Plc, a listed telecommunication firm in Kenya, has received bids worth KSh 41.6 billion for the first issue of its green corporate bond, against a target of KSh 15 billion, an oversubscription of 175.7%.
Safaricom will kick in the green shoe option, so as to absorb an additional KSh 5 billion, bringing total bids accepted to KSh 20 billion. This over-allotment option allows Safaricom to stabilize the share price of the bond once it is listed by controlling supply. Safaricom will refund KSh 21.4 billion in rejected bids to investors.
Safaricom Plc closed the subscriptions for the KSh 15 billion first tranche on December 5th 2025, a 5-year senior unsecured note. Proceeds from the green note will support projects that enhance operational efficiency, reduce environmental impact and strengthen the business.
These include investments in renewable energy such as expanding solar power across more base transmission stations and systems improvement to power management and reduce overall energy consumption.
Safaricom’s Green Bond is a sustainable debt instrument that aims to fund eco-friendly projects.
According to Peter Ndegwa Safaricom CEO, the huge subscriptions on its green bond is a signal of huge investor confidence in the company’s performance, prospects and strategic direction.
“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,” said Peter.
He added that 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. I would like to thank all investors, our transaction advisers, the Capital Markets Authority and all stakeholders whose support has made the successful issuance of Tranche 1 of the Medium-Term Note Programme possible.”
The green notes will be listed and begin trading on the Nairobi Securities Exchange on Tuesday, December 16.
Safaricom Green Bond Features
The five-year fixed-rate note, priced at 10.4%, will pay interest semi-annually in June and December each year. A key attraction for investors is that the return is fully tax-exempt, enhancing the effective yield. The minimum investment is KSh 50,000.
The Telco has over 60 million customers connected across Kenya and Ethiopia, and play a critical role in the society, supporting over 1.13 million jobs both directly and indirectly while its total economic value was estimated at KSh 1.1 trillion ($ 8.5 billion) for the 12 months to March 2025.
Listed on the Nairobi Securities Exchange and with annual revenues of close to KSh 388 billion as at March 2025, the telco provides connectivity through wide range of technology, 2G, 3G, 4G and 5G in aggregate covering over 99% of Kenya’s population.
Safaricom Network and Money Transfer System
Safaricom runs one of the world’s largest mobile payment system and Africa’s largest Fintech, M-PESA, the world’s first mobile money transfer system.
By empowering 37.9 million customers to transact, save or borrow money through their mobile phone, M-PESA has driven financial inclusion in Kenya to 84.8% in 2024 of the adult population from a low of 26.7% in 2006 and generated over KSh161 billion in revenue as at end of 2025 financial year.
Its subsidiary, Safaricom Telecommunications Ethiopia, has deployed world class network and services to contribute to Ethiopia’s digital transformation.
Safaricom is an equal opportunity employer, actively recruiting staff from different backgrounds reflecting the communities that it serves.
As part of its ongoing commitment to the Sustainable Development Goals (SDGs), Safaricom continues to work towards improving energy and resource efficiency in its network and facilities to reduce carbon emissions and fuel consumption.
ALSO READ: Kenya to Sell 15% Stake in Safaricom to Vodaphone: Unpacking the Deal
Leave a comment