afaricom PLC’s debut green note has made waves in the capital markets, attracting a staggering KES 41.6 billion in bids, nearly three times the initial KES 15 billion Tranche I target.
That’s a 175.7% oversubscription, a clear signal of investor confidence and appetite for sustainable finance.
“This strong uptake reflects investor confidence in our performance and strategy,” said CEO Peter Ndegwa.
Safaricom will take up KES 20 billion, the original KES 15 billion plus a KES 5 billion greenshoe option, leaving KES 21.6 billion to be refunded.
Why It Matters
- Coupon at 10.4%: It sets a high bar for upcoming infrastructure bonds (IFBs) from the Government of Kenya (GOK). Investors will be watching closely to see how GOK responds.
- Tax-Free Status: This wasn’t just a perk; it was a strategic move. By making the note tax-exempt, GOK likely aimed to boost uptake and set the tone for its own upcoming sovereign green issuance, which is part of the national borrowing plan.
- Green Focus: Proceeds will fund projects that improve operational efficiency, reduce environmental impact, and support renewable energy. This aligns with Kenya’s broader sustainability goals and positions Safaricom as a corporate leader in climate-conscious investing.
Bottom Line
The notes will be listed on the Nairobi Securities Exchange on December 16.
