Safaricom’s green bond has listed on the Nairobi Securities Exchange, with individual investors dominating demand in a transaction that highlights how mobile money is reshaping access to capital markets in East Africa’s biggest economy.
Retail investors accounted for 96 per cent of the 2,453 applications, with 59 per cent submitted via USSD and paid for through the company’s M-PESA platform. Total applications reached KES41.4bn ($260m), prompting Safaricom to take up KES20bn ($125m) in the first tranche of its domestic medium-term note programme, an oversubscription of 175 per cent.
The listing, marked by a bell-ringing ceremony at the exchange, represents Safaricom’s first issuance under its medium-term note programme and a deliberate return to Kenya’s capital markets, anchored in its sustainable finance framework.
“This transaction demonstrates what is possible when local capital markets are deliberately and thoughtfully engaged,” said Dilip Pal, Safaricom’s chief finance officer, adding that it reflected confidence in the company’s strategy and the depth of Kenya’s capital markets.
Proceeds from the green bond will be used to finance projects supporting an energy-efficient digital transition, including 5G rollout, solarisation of network sites and the shift away from legacy technologies towards cleaner, more efficient solutions.
Beyond Safaricom, the deal underscores the growing role of sustainable finance in mobilising long-term domestic capital for development. The company said initiatives such as Ziidi, its mobile money market fund, have already lowered barriers to saving and investing, and it will continue to explore new ways to broaden participation in capital markets.
The green bond is now listed and trading on the Nairobi Securities Exchange.