Safaricom PLC has today officially listed its Green Bond at the Nairobi Securities Exchange (NSE), marking a historic moment for Kenya’s capital markets.
The listing comes after a wildly successful offer period that saw individual investors dominate participation, signaling a shift in how retail investors engage with complex financial instruments.
In a move that underscores the power of digital accessibility, 2,453 individual investors participated in the bond, accounting for 96 percent of the total applications received. Notably, 59 percent of these applications were processed via USSD with payments made through M-PESA, a testament to the telco’s strategy of leveraging its ubiquitous mobile money ecosystem to democratize access to investment opportunities.
The telco has announced it will take up KES 20 billion in this first tranche of its Domestic Medium-Term Note (MTN) programme. This figure includes the initial KES 15 billion target plus a KES 5 billion “greenshoe” option (an additional amount taken up due to high demand).
The issuance received a total of KES 41.4 billion in applications from investors, representing a massive oversubscription of 175 percent. This makes it the largest Green Bond issuance in Kenya’s history, surpassing previous records and solidifying Safaricom’s position as a leader in sustainable finance.
Speaking during the bell-ringing ceremony at the NSE, Safaricom PLC Group Chief Finance Officer Dilip Pal termed the transaction a milestone for local capital engagement.
“This transaction demonstrates what is possible when local capital markets are deliberately and thoughtfully engaged. It is a clear vote of confidence in our fundamentals, strategy, and long-term outlook, and a strong signal of confidence in the depth and resilience of Kenya’s capital markets,” said Pal.
The bond, which offers a fixed interest rate of 10.40% per annum, is tax-exempt, a key incentive that likely fueled the high appetite among investors. The funds raised are earmarked for “eligible green projects” under Safaricom’s Sustainable Finance Framework. According to Pal, these proceeds will finance the transition to an energy-efficient digital future, including the aggressive 5G deployment, solarisation of network sites, and upgrading legacy technologies to cleaner solutions.
This listing is not just a capital raise; it reflects a strategic pivot in Safaricom’s funding model. By tapping into the bond market, the company is diversifying its capital sources beyond traditional bank loans, positioning the NSE as a scalable platform for long-term financing.
The high participation of retail investors via mobile phones mirrors the success of other Safaricom-led initiatives aimed at financial inclusion, such as Ziidi, the mobile money market fund. These innovations have significantly lowered the barriers to saving and investing, bringing capital market products within reach of everyday Kenyans.
Safaricom has indicated that this is just the beginning, with plans to explore further avenues to expand access and drive financial inclusion. The Green Bond is now live and available for trading on the Nairobi Securities Exchange.
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