Safaricom will accept Sh20 billion of the Sh41.4 billion offered by investors in the first phase of its Sh40 billion medium term note programme.
The company had targeted to raise Sh15 billion, with room for an additional Sh5 billion depending on investor demand. Instead, it received Sh41.4 billion in bids, 175.7 per cent above the target, indicating strong investor demand.
Safaricom’s chief executive officer said:
“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.”
The telco will exercise its Sh5 billion greenshoe option, bringing the total raised to Sh20 billion, and will refund Sh21.4 billion to investors.
Safaricom will use the proceeds of the bond to invest in renewable energy by expanding solar power across its base transmission stations to reduce overall energy consumption.
The green notes will be listed and begin trading on the Nairobi Securities Exchange on Tuesday, December 16.
The five-year paper offers investors 10.4% after-tax return, with interest paid out semi-annually in June and December.
