Safaricom PLC’s Tranche 1 green note offer of its KES 40B Medium Term Note (MTN) programme received bids totalling KES 41.6 billion against a target of KES 15 billion, marking an oversubscription of 175.7%, underscoring strong investor confidence, not only in the company’s performance, prospects, and strategic direction, but also in the wider corporate bond market.
Following approval from the Capital Markets Authority (CMA), the mobile network operator will exercise the full KES 5 billion greenshoe option, bringing total allocations for the tranche to KES 20 billion. The telecommunications company will refund KES 21.4 billion to investors.
“Taking up a greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out.” – Safaricom Plc CEO Peter Ndegwa.
Proceeds from the 10.4% fixed-rate note will be channelled toward projects that enhance operational efficiency, reduce environmental impact, and strengthen the business in line with the company’s Sustainable Finance Framework. The company plans to invest in renewable energy by expanding solar power across more base transmission stations and improving power management systems to reduce overall energy consumption.
Safaricom’s Green Notes listing
The green notes will be listed on the Nairobi Securities Exchange (NSE) under the Fixed Income Securities Market Segment (FISMS) on December 16, 2025, enabling investors to trade them secondarily. Investors in the five-year note will receive tax-free interest semi-annually in June and December.
The successful Tranche 1 by Safaricom illustrates investor confidence in Kenya’s corporate bond market, following EABL’s successful bond issuance that raised KES 16.76 billion against a target of KES 11 billion, achieving an overall subscription rate of 152.4%. The two corporate bonds by the telecommunications firm and the brewer received bids totalling KES 58.36 billion with the firms taking up KES 36.76 billion.
Also Read: Vodacom Launches Bold Proposal to Acquire an Additional 15% Stake in Safaricom
