Safaricom has secured an additional KES 15 billion sustainability-linked loan, further advancing its Environmental, Social, and Governance (ESG) initiatives. This new facility, which follows a similar loan obtained last year, pushes the telecom giant’s total sustainability financing to KES 30 billion. The funding is part of Safaricom’s strategic plan to integrate sustainability into its core business operations.
The loan was provided by a consortium of local banks, including Kenya Commercial Bank (KCB), ABSA, Standard Chartered, and Stanbic Bank. These funds are set to accelerate Safaricom’s investments in key areas such as reducing its carbon footprint, promoting gender diversity, and enhancing its social impact. Safaricom is aiming to become a net-zero carbon-emitting company by 2050, and this funding will help fast-track its efforts toward this ambitious goal.
Safaricom CEO Peter Ndegwa expressed enthusiasm for the loan, noting that it reinforces the company’s long-term sustainability journey. “This deal helps accelerate the advancement of our sustainability agenda. It is a testament that we have achieved the targets we set out with the first one, where we aligned our sustainability goals with our financial strategy,” Ndegwa stated.
Safaricom has been actively working on integrating its ESG commitments with its financial operations, a move designed to create long-term value for both the company and its stakeholders. The sustainability financing will support various projects, including renewable energy initiatives, green infrastructure, and initiatives aimed at promoting inclusion and diversity.
In this latest chapter of sustainability financing, Standard Chartered took the lead as the mandated lead arranger and book runner, while Kenya Commercial Bank served as the lead arranger. Stanbic Bank Kenya and ABSA Bank Kenya both played key roles as arrangers in this transaction. Standard Chartered also acted as the global and sustainability coordinator.
Safaricom’s Chief Financial Officer, Dili Pal, reiterated the company’s commitment to aligning its operations with sustainability goals. “We are dedicated to making conscious efforts to ensure that our projects and initiatives align with the ESG agenda,” Pal emphasized.
