Safaricom’s Debut Green Bond Draws Massive Demand, Hits KSh 41.4bn in Bids

Safaricom’s maiden green bond has sailed well past expectations, attracting investor bids worth KSh 41.4 billion against an initial target of KSh 15 billion. The overwhelming demand prompted the telco to fully activate its KSh 5 billion greenshoe option, raising the final size of the tranche to KSh 20 billion.

Applications for Tranche 1 of Safaricom’s Medium Term Note programme translated to a subscription rate of roughly 276%. In line with the limits set out in the Information Memorandum, the company will allot the full KSh 20 billion and refund about KSh 21.4 billion to investors whose bids could not be accommodated.

Funds raised through the green note will be channelled into projects aimed at improving operational efficiency, cutting environmental impact and expanding the use of renewable energy across Safaricom’s network.

The notes will be issued at par on 11 December 2025 and will mature on 11 December 2030. Successful investors will see the bonds credited to their CDSC accounts on 15 December, with trading on the Nairobi Securities Exchange set to begin a day later. Coupon payments will be made semi-annually, every 11 June and 11 December.

Safaricom CEO Peter Ndegwa said the strong response underlines market confidence in the company’s strategy and financial standing, adding that tapping the bond market was a conscious move to broaden funding options.

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He noted that exercising the greenshoe ensured wider investor participation rather than shutting out excess demand.

The proceeds will support initiatives such as rolling out solar power at transmission sites, upgrading older infrastructure, enhancing power management systems and lowering overall energy consumption. Safaricom confirmed that allotment notices are already being issued, with refunds for unsuccessful bids due to start on the issue date.

Bond snapshot