Mr Viral
Safaricom’s debut green bond has raised $320.3 million in just two weeks, well above its $116 million target, highlighting strong demand for sustainability-linked fixed-income assets in Kenya.
The telecom operator will absorb $154.8 million, the maximum under the first tranche of its Medium-Term Note Programme after exercising a $38.5 million greenshoe option. The remaining $165.5 million will be refunded to investors.
“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,” said Safaricom CEO Dr. Peter Ndegwa.
“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out.”
Priced at a tax-exempt 10.4% and maturing in five years, the bond will list on the Nairobi Securities Exchange on December 16.
Proceeds will fund renewable-energy projects and energy-efficiency upgrades across Safaricom’s network, including solar expansion at base stations and improved power-management systems.
The oversubscription underscores growing investor appetite for sustainable, high-yielding instruments amid tight credit conditions and a recovering capital markets environment.
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