Safaricom’s first green note drew KSh 41.4 billion in bids against a KSh 15 billion target, forcing the company to take up the full KSh 5 billion greenshoe and lift the tranche to KSh 20 billion.
- •Safaricom received applications totalling KSh 41.4 billion for Tranche 1 of its Medium Term Note programme, equal to a 275.7% subscription rate.
- •In line with the maximum amount approved under the Information Memorandum, the company will exercise the full greenshoe and refund KSh 21.4 billion to investors.
- •Proceeds from the green note will fund projects that enhance operational efficiency, reduce environmental impact and support renewable energy use.
The notes will be issued on 11 December 2025 at par and will mature on 11 December 2030. Successful applicants will have their notes credited to their CDSC accounts on 15 December and trading on the Nairobi Securities Exchange will begin on 16 December. Coupon payments will be made every 11 June and 11 December in accordance with the applicable business day convention.
Chief Executive Officer Peter Ndegwa said the strong uptake reflects confidence in Safaricom’s performance and strategy. He noted that the company’s entry into the corporate bond market was a deliberate move to diversify funding sources.
“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,” he said.
Ndegwa added that the greenshoe gives more investors room to participate.
“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out.”
These include expanding solar power across transmission stations, upgrading legacy sites, improving power management and reducing overall energy consumption.
Safaricom confirmed that allotment notifications have commenced, while refunds for unsuccessful allocations will begin on the issue date.
| Metric | Details |
|---|---|
| Total Bids Received | KSh 41.6 billion |
| Initial Target | KSh 15 billion |
| Oversubscription | 175.7 percent |
| Greenshoe Exercised | KSh 5 billion |
| Final Tranche Size | KSh 20 billion |
| Amount to Be Refunded | KSh 21.4 billion |
| Coupon | 10.4 percent, tax exempt |
| Tenor | Five years |
| Listing Date | 16 December |
| Use of Proceeds | Energy-efficient upgrades and renewable energy projects |
