Safaricom has received applications totaling Ksh 41.6 billion for the first tranche of its Medium-Term Note, an oversubscription of 175.7% against the initial Ksh 15 billion target.

The company will exercise the full Ksh5 billion greenshoe, bringing total allocations for the tranche to Ksh20 billion, in line with the maximum amount approved to be taken for this first tranche.

Consequently, and in accordance with the allotment terms and conditions set out in the Information Memorandum, Safaricom will refund KES 21.4 billion to investors due to the strong demand for the green note.

Safaricom CEO Explanation

Safaricom Chief Executive Officer (CEO) Peter Ndegwa said the strong uptake reflects investors’ confidence in the company’s performance, prospects, and strategic direction.

“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,” Peter said.

Also Read: CS Mbadi Clarifies on Government Selling Safaricom Shares

How Green Note Proceeds Will be Used

Proceeds from the green note will support projects that enhance operational efficiency, reduce environmental impact, and strengthen the business.

These include investments in renewable energy, such as expanding solar power across more base transmission stations and systems improvement to power management, and reducing overall energy consumption.

“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out,” said Peter.

Also Read: Kenyans Invited to Comment on Planned Sale of Government Safaricom Shares

“We are pleased to provide a broader range of investment opportunities as the company continues to expand. I would like to thank all investors, our transaction advisers, the Capital Markets Authority, and all stakeholders whose support has made the successful issuance of Tranche 1 of the Medium-Term Note Programme possible.”

The green notes will be listed and begin trading on the Nairobi Securities Exchange on Tuesday, December 16.

The five-year fixed-rate note, priced at 10.4%, will pay interest semi-annually in June and December. A key attraction for investors is that the return is fully tax-exempt, enhancing the effective yield.

Follow our WhatsApp Channel and WhatsApp Community for instant news updates

Safaricom PLC Headquarters in Nairobi. PHOTO/ NMG.