Safaricom CEO Peter Ndegwa. Photo/courtesy.
Safaricom Plc has successfully raised Sh20.0 billion from the first tranche of its inaugural corporate bond offering after the notes were oversubscribed by 177 percent.
The teleco had initially targeted Sh15.0 billion under the first tranche of its Sh40 billion Medium-Term Note (MTN) programme, but strong demand drove total bids to Sh41.6 billion, prompting the company to exercise a Sh5.0 billion “greenshoe” option to accommodate excess demand.
Issued as a five-year fixed-rate green bond, the notes carry an annual interest rate of 10.4 percent, with maturities due in December 2030. The bonds are scheduled to list on the Nairobi Securities Exchange (NSE) on 16 December 2025.
Proceeds from the offering will fund or refinance “eligible green projects” under Safaricom’s sustainability framework including investments in renewable energy, energy efficiency upgrades, network expansion and other environmentally aligned infrastructure.
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The success of the issuance marks one of the largest-ever corporate bond deals by a listed Kenyan firm, signaling renewed investor confidence in local fixed-income securities at a time when corporate debt issuance had slowed.
Safaricom had previously raised long-term funding via a Sh30 billion sustainability-linked loan from a consortium of local banks. The bond now gives it a diversified capital base as it pursues heavy capital spending including expansion at home and in Ethiopia.
The firm is expected to use the funds to support its 2025–2026 investment programme, which includes network upgrades, expanding 4G/5G coverage and broadband service, as well as supporting its fintech and digital-services ambitions across the region.
