NAIROBI, Kenya, Dec 10 – Safaricom has announced a strong investor response to the first tranche of its Medium-Term Note (MTN) Programme, attracting applications worth Sh41.6 billion—an oversubscription of 175.7% against the initial Sh15 billion target.
The telco will take up the full Sh5 billion greenshoe option, increasing the total allocation for the tranche to Sh20 billion, which is the maximum allowable for this phase. As a result of the significant oversubscription, Safaricom will refund Sh21.4 billion to investors in line with the allotment conditions outlined in the Information Memorandum.
Chief Executive Officer Peter Ndegwa said the exceptional uptake reflects the market’s confidence in Safaricom’s performance, resilience and long-term strategy.
“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. We made a deliberate decision to diversify our funding sources, and this outcome affirms this choice,” said Ndegwa.
The proceeds from the green note will support sustainability-aligned projects geared towards reducing the company’s environmental footprint and enhancing operational efficiency.
These include expanding the use of renewable energy, particularly solar infrastructure at base transmission stations, as well as upgrading systems to improve power management and cut overall energy consumption.
Ndegwa added that exercising the greenshoe option ensured broader investor participation in the company’s growth:
“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out. We are pleased to provide a broader range of investment opportunities as the company continues to expand.”
The green notes will be listed and traded on the Nairobi Securities Exchange (NSE) from Tuesday, December 16.
The five-year fixed-rate instrument, priced at 10.4%, will pay interest semi-annually in June and December. A key attraction for investors is the full tax exemption on returns, which boosts the effective yield.
