Connect with us

Hi, what are you looking for?


Safaricom bond offer raises Sh7.5b

NAIROBI, Kenya, Nov 2 – The first Sh5 billion tranche of listed telecoms firm Safaricom’s corporate bond offer was oversubscribed by 50 percent.

The operator received applications of over Sh7.5 billion, in the initial medium term note of a Sh12 billion bond programme in the offer which closed on October 29.

“We are delighted by the uptake of this bond and the excitement it has generated in the market. This represents a validation of our strategic direction by the market,” said Safaricom CEO Michael Joseph.

The minimum amount that one required to invest in the bond was Sh1 million.

Allocations for the offer which is part of a capital raising initiative were completed on Friday October 30.

Most of the applications and allocations were for the fixed component although the notes had also been divided into a floating rate. 

The fixed rate notes carry a coupon rate of 12.25 per cent per year, while the floating rate notes’ pricing will be pegged at 185 basis points above the most recent published rate for the 182-day Treasury Bill.

The bond is expected to begin at Nairobi Stock Exchange on November 30.

The success of the Safaricom bond and the just concluded KenGen Public Infrastructure Bond Offer points to the increased appetite in the long term debt instruments among Kenyans.

Advertisement. Scroll to continue reading.

The PIBO whose target was Sh15billion raised Sh26.6 billion and its trading is expected commence on November 9.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...