On 9 December 2025, Safaricom PLC announced that it had successfully raised Ksh 20 billion in its first green bond issuance under the KSh 40 billion Domestic Medium Term Note (MTN) programme. The offer attracted exceptionally strong market interest, marking it as one of Kenya’s most heavily subscribed corporate bonds in recent years.
Safaricom launched the bond on 25 November 2025, with an initial target of Ksh 15 billion and an additional Ksh 5 billion “greenshoe” option to accommodate oversubscription. By the close of the offer on 5 December 2025, the bond had received approximately 41,400 individual investor applications, totaling Ksh 41.4 billion ,an oversubscription rate exceeding 175%.
The company exercised the full greenshoe option, bringing the total allocation for the first tranche to Ksh 20 billion. Despite this, nearly 21,400 investors will have their bids only partially allocated or unallocated, prompting Safaricom to return the excess funds to these 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. He added that the refund process ensures fairness and transparency, especially given the unprecedented demand for the bond.
The green bond carries a fixed annual interest rate of 10.4%, is tax exempt, and has a five year tenor, maturing in 2030. These features, coupled with Safaricom’s strong corporate profile, significantly boosted investor demand.
Proceeds from the issuance will finance projects under Safaricom’s Sustainable Finance Framework, including renewable energy expansion, energy efficiency upgrades, and sustainability focused infrastructure improvements.
As of today, the confirmed amount raised from the green-bond issuance is Ksh 20 billion, with Safaricom preparing to return excess funds to approximately 21,400 investors whose applications could not be fully accommodated. The strong subscription demonstrates robust investor confidence in green financing and sets a positive precedent for future tranches under the MTN programme.
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