Safaricom’s Green Bond oversubscribed by 176% as investors pour in KES 41.6 billion
Safaricom has recorded a significant uptake for its first Green Bond issuance, receiving applications totalling KES 41.6 billion, surpassing its initial target of KES 15 billion.
The strong market appetite represents a 175.7% oversubscription rate, signaling robust investor confidence in the telecommunication giant’s sustainability strategy.
Following the overwhelming demand, Safaricom has opted to exercise its KES 5 billion “greenshoe” option, a provision that allows issuers to sell more shares or bonds than originally planned to meet high demand.
This decision brings the total funds raised in this first tranche to KES 20 billion, the maximum approved amount. Consequently, the company will refund KES 21.4 billion to investors in accordance with the allotment terms set out in the Information Memorandum.
Safaricom Chief Executive Officer, Peter Ndegwa, attributed the successful issuance to the market’s trust in the company’s long-term vision and financial health.
“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 Mr. Ndegwa.
He added that taking up the greenshoe option was a strategic move to allow more investors to participate in Safaricom’s growth story rather than locking them out.
Proceeds from the bond are earmarked for green projects aimed at enhancing operational efficiency and reducing the company’s carbon footprint. These investments will focus on renewable energy initiatives, such as the expansion of solar power infrastructure across base transmission stations, as well as systems improvements designed to manage power consumption more effectively.
The five-year fixed-rate note is priced at 10.4% and will pay interest semi-annually in June and December. A significant draw for investors is the bond’s tax-exempt status, which effectively enhances the yield compared to standard corporate bonds.
The Green Notes are scheduled to list and commence trading on the Nairobi Securities Exchange (NSE) on Tuesday, December 16, 2025.
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