By Jameson
Safaricom (NSE: SCOM) has announced an oversubscription of its first tranche Medium-Term Note (MTN) Programme, receiving applications worth KES 41.6 billion against an initial target of KES 15 billion.
The telco will take up the full KES 5 billion greenshoe option, raising the total allocation for the tranche to KES 20 billion, the maximum approved for the issuance. As a result, Safaricom will refund KES 21.4 billion to investors, in line with allotment terms outlined in the Information Memorandum.
Chief Executive Officer Peter Ndegwa said the strong investor appetite underscores confidence in Safaricom’s financial performance 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,” he said.
Proceeds from the green note will support sustainability and efficiency projects, including expanding solar energy use across more base transmission stations and upgrading systems to reduce overall energy consumption.
“Taking up the greenshoe option allows more investors to participate in Safaricom’s growth, rather than locking them out,” Ndegwa added. “We are pleased to provide a broader range of investment opportunities as the company continues to expand.”
The green notes will be listed and start trading on the Nairobi Securities Exchange on Tuesday, December 16.
The five-year fixed-rate note is priced at 10.4 percent and will pay interest semi-annually in June and December. The return is fully tax-exempt, a feature that has been a key draw for investors seeking higher effective yields.
