NAIROBI, Kenya, Dec 9 – Safaricom’s debut green bond has attracted Sh41.4 billion against a target of Sh15 billion, marking a 175 percent oversubscription and signalling strong investor appetite for fixed-income instruments linked to sustainability.
The telco said it will take up Sh20 billion, the maximum allowed under the first tranche of its Medium-Term Note Programme, after exercising a Sh5 billion greenshoe option.
The heavy demand means Sh21.4 billion will now 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 CEO Peter Ndegwa.
“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out.”
The green bond,priced at a tax-exempt 10.4 percent and maturing in five years will be listed on the Nairobi Securities Exchange on December 16.
Proceeds will go toward renewable-energy investments and energy-efficiency upgrades across the telco’s network, including expanding solar power in base stations and improving power-management systems.
The strong uptake comes as institutional investors increasingly seek sustainable, high-yielding assets amid tight credit conditions and a recovering capital markets environment.
Safaricom’s offer now ranks among the most oversubscribed corporate notes in recent years.
