Safaricom has once again demonstrated its commitment to sustainability by securing a new KES 15 billion Sustainability-Linked Loan. This latest facility, which brings the total amount of sustainability-focused loans to KES 30 billion, follows the successful closure of a similar loan announced last year.
The loan, which is the largest of its kind in East Africa, will support Safaricom’s ambitious Environmental, Social, and Governance (ESG) goals. It has been backed by a consortium of leading financial institutions, including KCB, ABSA, Standard Chartered, and Stanbic. The funding is aimed at scaling up the company’s strategic sustainable investments, further integrating ESG principles into its core business operations.
“This deal helps to accelerate the advancement of our sustainability agenda. It is a testament that we have achieved the targets we set out to achieve with the first one, where we aligned our sustainability agenda with our financial strategy,” said Safaricom CEO Peter Ndegwa.
The newly secured facility will be instrumental in Safaricom’s journey toward becoming a fully-fledged technology company. A key focus of this transition will be reducing the company’s carbon footprint, advancing gender diversity, and enhancing its efforts in monitoring social impact. Safaricom has set a bold goal to become a Net Zero carbon-emitting company by 2050, with several initiatives already in place to support this vision.
“We are delighted to have partnered with key leaders in the region for this latest chapter of sustainability financing. It will enhance our accountability in ESG reporting and help us attract more investment and drive growth,” Mr. Ndegwa added.
Dilip Pal, Safaricom’s Chief Financial Officer, emphasized the company’s dedication to aligning its projects and initiatives with sustainability goals. “This deal highlights our commitment to sustainability and underscores the synergy between our sustainability and financing strategies,” he said.
In terms of the transaction, Standard Chartered played a key role as the Mandated Lead Arranger, Bookrunner, Global Coordinator, and Sustainability Coordinator. Kenya Commercial Bank also served as a Mandated Lead Arranger, while Stanbic Bank Kenya and ABSA Bank Kenya acted as Arrangers.
