Safaricom is set to raise up to Sh20 billion in the first tranche of its Sh40 billion medium-term note programme, offering investors an an annual interest rate of 10.4 per cent.
The first tranche will be up to Sh15 billion, with a Sh5 billion greenshoe option to expand the offer if investor demand is strong.
East African Breweries Limited (EABL) earlier this month, raised Sh16.7 billion, over and above the targeted Sh11 billion in the first tranche of its Sh20 billion medium term paper.
This was after investors oversubscribed the offer by 152 per cent, prompting EABL to take up its option of absorbing up to Sh6 billion offered beyond the targeted Sh11 billion.
Safaricom has earmarked the proceeds of the bond to finance or refinance eligible green projects under Safaricom's Sustainable Finance Framework and will be spent only in Kenya.
The company intends to utilize the funds to transition its base stations to renewable energy mostly solar and battery and replace legacy base stations that have been in existence since it was founded back in 2000.
The minimum subscription is set at Sh50,000 with additional investments allowed in multiples of Sh10,000. The offer is set to run from November 25, 2025 till December 5th, 2025 with allotment to be done on December 8, 2025 and thereafter the notes will be listed on the Nairobi Securities Exchange on December 16, 2025.
Safaricom Group ended the half-year period to September 30, 2025 carrying Sh117 billion in debt. The company has recently seen its debt and finance costs go up driven by capital expenditure.
The telco spent Sh43.7 billion on capital expenditure in the first-half of the year ended September 30, 2025 with Sh34.2 billion spent in Kenya. 73 per cent of the capital expenditure was spent on network expansion.
In Kenya, the number of 4G and 5G devices on the network rose by 27 per cent and 56 per cent respectively in the half year ended September 30, 2025.
Safaricom Group expects to spend between Sh72billion and 78 billion in capital expenditure by March 2026.
