• Telecom operator launches KES40 billion medium-term bond program

• First KES15 billion tranche offered at a fixed 10.40% rate for five years

• Issue includes green bonds to fund projects with environmental impact

Safaricom PLC has launched a new domestic medium-term bond program aimed at raising up to 40 billion Kenyan shillings (KES), about $309 million.

The program opened with a first tranche of KES15 billion, with an additional KES5 billion available through a greenshoe option. The bonds carry a fixed annual interest rate of 10.40% over five years. Subscriptions are open until December 5. This tranche also includes green bonds to finance projects with a positive environmental impact, in line with the applicable pricing supplement.

The offering is led by a consortium of joint bookrunners: SBG Securities, Stanbic Bank Kenya, and Standard Chartered Bank Kenya. These three institutions, along with Dyer & Blair Investment Bank, also act as placing agents. “We are proud to partner with Safaricom as Joint Lead Advisor, Sponsoring Broker, Placing Agent and Receiving Bank on its KES 40 billion Domestic Medium Term Note Programme—the largest ever approved by the CMA,” Stanbic Bank Kenya said.

Safaricom aims to diversify its funding sources and support upcoming projects as it positions itself to become a “responsible African technology company” by 2030.

The firm plans to focus on reducing carbon emissions, tracking gender diversity, and assessing its social equality impact.

SG