NAIROBI, Kenya — Safaricom has unveiled the first tranche of its Fixed Rate Green Notes under the newly approved Sh40 billion Domestic Medium Term Note (MTN) Programme, marking a major step in the telco’s shift toward sustainable and Kenya-shilling-denominated financing.
The announcement follows approval by the Capital Markets Authority (CMA) on November 7, 2025, with the specific tranche terms cleared through a Pricing Supplement dated November 25, 2025.
According to the notice, Safaricom will open subscriptions for up to Sh15 billion, with an additional Sh5 billion greenshoe option subject to investor appetite.
The notes carry a five-year tenor and a fixed interest rate of 10.40pc, positioning them competitively against recent corporate issuances such as the EABL notes priced at 11.8pc.
The issue comprises senior, unsecured notes, which will be listed on the Nairobi Securities Exchange (NSE).
The minimum investment stands at Sh50,000, with increments of Sh10,000, making the offer accessible to a wide range of institutional and retail investors.
Safaricom confirmed that 100pc of proceeds from the tranche will finance or refinance eligible green projects under its Sustainable Finance Framework, focusing on renewable energy, energy efficiency, green buildings, and sustainable waste management.
The offer opened on November 25, 2025, at 8:00 am, and will close on December 5, 2025, at 5:00 pm.
Key dates in the issuance include the allocation on December 8, investor notifications on December 9, institutional settlement on December 15, CDSC uploads on December 16, and simultaneous listing on the NSE.
A consortium of top financial and advisory firms is managing the issuance. SBG Securities Limited and Stanbic Bank Kenya Limited serve as Joint Lead Arrangers, supported by placing agents Standard Chartered Bank Kenya, SBG Securities, and Stanbic Bank.
Dyer & Blair Investment Bank is the sponsoring broker, while Image Registrars acts as Note Trustee.
Other partners include MTC Trust and Corporate Services as legal counsel, with Bowmans Kenya (Coulson Harney LLP) and PwC serving as reporting accountants.
Market analysts note that Safaricom’s decision is driven partly by the need to hedge against foreign exchange volatility, following heavy FX losses on dollar-denominated loans related to its Ethiopia expansion.
By issuing a Kenya shilling-denominated bond, Safaricom aligns its liabilities with its revenue currency, reducing exposure to shifts in the exchange rate.
The five-year facility also provides flexibility to fund large capital projects—including the Ethiopia rollout and domestic 5G densification—without heavily drawing down operating cash flows, thereby safeguarding shareholder dividends.
Structuring the tranche as a Green Bond enables the telco to tap into specialised sustainability capital pools, reduce its Weighted Average Cost of Capital (WACC), and reinforce its long-term ESG commitments.
The launch marks one of the largest green corporate issuances in Kenya to date, signalling deepening investor interest in sustainability-linked financing and affirming Safaricom’s strategy to embed climate-conscious investment within its broader growth agenda.
