Safaricom PLC has at present formally listed its Inexperienced Bond on the Nairobi Securities Alternate (NSE), marking a historic second for Kenya’s capital markets.
The itemizing comes after a wildly profitable provide interval that noticed particular person traders dominate participation, signaling a shift in how retail traders have interaction with complicated monetary devices.
In a transfer that underscores the facility of digital accessibility, 2,453 particular person traders participated within the bond, accounting for 96 p.c of the whole functions obtained. Notably, 59 p.c of those functions had been processed through USSD with funds made by means of M-PESA, a testomony to the telco’s technique of leveraging its ubiquitous cell cash ecosystem to democratize entry to funding alternatives.
The telco has introduced it’ll take up KES 20 billion on this first tranche of its Home Medium-Time period Be aware (MTN) programme. This determine consists of the preliminary KES 15 billion goal plus a KES 5 billion “greenshoe” possibility (a further quantity taken up as a result of excessive demand).
The issuance obtained a complete of KES 41.4 billion in functions from traders, representing a large oversubscription of 175 p.c. This makes it the biggest Inexperienced Bond issuance in Kenya’s historical past, surpassing earlier information and solidifying Safaricom’s place as a frontrunner in sustainable finance.
Talking through the bell-ringing ceremony on the NSE, Safaricom PLC Group Chief Finance Officer Dilip Pal termed the transaction a milestone for native capital engagement.
“This transaction demonstrates what is feasible when native capital markets are intentionally and thoughtfully engaged. It’s a clear vote of confidence in our fundamentals, technique, and long-term outlook, and a powerful sign of confidence within the depth and resilience of Kenya’s capital markets,” stated Pal.
The bond, which provides a hard and fast rate of interest of 10.40% every year, is tax-exempt, a key incentive that probably fueled the excessive urge for food amongst traders. The funds raised are earmarked for “eligible inexperienced tasks” underneath Safaricom’s Sustainable Finance Framework. In accordance with Pal, these proceeds will finance the transition to an energy-efficient digital future, together with the aggressive 5G deployment, solarisation of community websites, and upgrading legacy applied sciences to cleaner options.
This itemizing is not only a capital increase; it displays a strategic pivot in Safaricom’s funding mannequin. By tapping into the bond market, the corporate is diversifying its capital sources past conventional financial institution loans, positioning the NSE as a scalable platform for long-term financing.
The excessive participation of retail traders through cellphones mirrors the success of different Safaricom-led initiatives geared toward monetary inclusion, comparable to Ziidi, the cell cash market fund. These improvements have considerably lowered the limitations to saving and investing, bringing capital market merchandise inside attain of on a regular basis Kenyans.
Safaricom has indicated that that is only the start, with plans to discover additional avenues to broaden entry and drive monetary inclusion. The Inexperienced Bond is now reside and accessible for buying and selling on the Nairobi Securities Alternate.
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