Safaricom has locked down an additional Sh15 billion sustainability-linked loan, pushing its total sustainability financing to Sh30 billion.
The latest facility follows a similar loan secured last year and is aimed at accelerating the telecom giant’s Environmental, Social, and Governance (ESG) agenda.
This funding round was provided by a consortium of local banks, including Kenya Commercial Bank (KCB), ABSA, Standard Chartered, and Stanbic, to boost Safaricom’s strategic sustainable investments.
Safaricom’s CEO, Peter Ndegwa, expressed his excitement about the new deal, highlighting that it aligns perfectly with the company’s ongoing sustainability journey.
“This deal helps to accelerate the advancement of our sustainability agenda. It is a testament that we have achieved the targets we set out with the first one, where we aligned our sustainability goals with our financial strategy,” Ndegwa said.
Safaricom’s sustainability plans are multifaceted, ranging from reducing its carbon footprint to promoting gender diversity and enhancing its social impact.
The company aims to become a net-zero carbon-emitting company by 2050, a goal that this funding will help fast-track.
In what marks another chapter in sustainability financing, Safaricom has once again partnered with key regional banks to fund its ESG-focused projects.
This collaboration is expected to improve Safaricom’s accountability in ESG reporting, attract more investment, and ultimately fuel further growth.
Ndegwa emphasized the importance of these partnerships, noting, “We are delighted that we have tapped into partnerships with key leaders in the region in the latest chapter of sustainability financing. It will improve our accountability measures on ESG reporting, where we will have an opportunity to attract more investment and growth.”
Safaricom’s Chief Financial Officer, Dili Pal, also reiterated the company’s commitment to aligning its projects with sustainability goals, stating, “We are dedicated to making conscious efforts to ensure that our projects and initiatives align with the ESG agenda.”
The firm’s sustainability and financing strategies, he added, are closely integrated, ensuring long-term value creation.
As with the previous loan, Standard Chartered took the lead as mandated lead arranger and book runner, acting as the global and sustainability coordinator for the transaction.
Kenya Commercial Bank served as the lead arranger, while Stanbic Bank Kenya and ABSA Bank Kenya both played roles as arrangers.
With Safaricom’s ongoing transition into a fully-fledged technology company, the funding will undoubtedly propel its sustainability efforts forward, positioning the company as a regional leader in both technological and environmental advancements.
