Safaricom has launched the first tranche of its Fixed Rate Green Notes under the newly approved Ksh40 billion Domestic Medium Term Note (MTN) Programme.
In a notice dated Tuesday, November 25, 2025, the telecommunications giant announced that this launch follows approval from the Capital Markets Authority (CMA) on November 7, 2025, to establish the MTN Programme.
Further approval was granted to issue the first tranche of notes, as detailed in the Pricing Supplement dated November 25, 2025.
“Safaricom PLC (“Safaricom”) is pleased to announce that following the approval granted by the Capital Markets Authority on November 7, 2025, to establish the MTN Programme, it has received additional approval for the issuance of the first tranche of notes under the programme as per the terms and conditions outlined in the Pricing Supplement dated November 25, 2025,” the notice stated.
Safaricom Opens Subscription for 5-Year KES 15B Green Notes at 10.40%
According to Safaricom, the initial tranche offers up to Ksh15 billion in Green Notes, with an additional Ksh5 billion greenshoe option available depending on investor demand.
The notes have a five-year tenor and carry a fixed interest rate of 10.40% per annum, making them competitively priced against similar corporate issuances, including the recent EABL notes priced at 11.8%.
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These notes are senior and unsecured and will be listed on the Nairobi Securities Exchange (NSE). The minimum investment amount is Ksh 50,000, with additional subscriptions allowed in increments of Ksh 10,000.
The NSE-listed telco confirmed that 100% of the proceeds from this tranche will be allocated to financing and refinancing eligible green projects under its Sustainable Finance Framework. These projects focus on areas with environmental impact, such as renewable energy, energy efficiency, green buildings, and sustainable waste management.
Additionally, the telecommunications company announced that the offer will open on November 25, 2025, at 8:00 am and will close on December 5, 2025, at 5:00 pm. Key upcoming dates regarding the Medium Term Note Program include:
– Allocation Date: December 8, 2025
– Notification to Investors: December 9, 2025
– Issue & Payment Date (Institutional Investors): December 15, 2025
– CDSC Account Upload: December 16, 2025
– Listing Date on NSE: December 16, 2025
Transaction Advisors and Partners
The issuance is being managed by a consortium of leading financial institutions which include :
– Joint Lead Arrangers: SBG Securities Limited and Stanbic Bank Kenya Limited
– Placing Agents: Standard Chartered Bank Kenya Limited, SBG Securities, and Stanbic Bank Kenya Limited
– Sponsoring Broker: Dyer & Blair Investment Bank
– Note Trustee: Image Registrars Limited
– Registrar, Fiscal Agent & Calculation Agent: SBG Securities Limited
– Legal Counsel: MTC Trust and Corporate Services Limited
– Reporting Accountants: Bowmans Kenya (Coulson Harney LLP) and PwC
Why the Loan Matters
Some reasons why Safaricom has opted for the KES 40 billion loan include:
Following foreign exchange losses on dollar-denominated loans for its Ethiopia expansion, this Kenyan shilling-denominated bond allows the telecom to align its liabilities with its revenue currency. This strategy protects against fluctuations in the exchange rate.
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The five-year tenor of this bond will enable Safaricom to fund substantial capital expenditure projects, such as the Ethiopia rollout and local 5G densification. This approach helps preserve operating cash flow, thereby protecting the dividends that shareholders depend on.
By structuring this as a Green Bond (Tranche 1 targeting Eligible Green Projects), Safaricom can lower its Weighted Average Cost of Capital (WACC) while tapping into specialized sustainable capital pools, thus aligning its financing with its ESG goals.
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