Safaricom, Kenya’s leading telecommunications company, has reinforced its dedication to sustainability by securing a KES 15 billion Sustainability-Linked Loan. This landmark deal, the largest of its kind in East Africa, brings Safaricom’s total sustainability-focused loans to an impressive KES 30 billion.
Key Highlights:
- Safaricom obtains KES 15 billion Sustainability-Linked Loan
- Total sustainability-focused loans now reach KES 30 billion
- A consortium of leading banks backs the initiative
- Loan supports Safaricom’s ambitious Environmental, Social, and Governance (ESG) goals
The new facility follows a similar loan secured last year, demonstrating Safaricom’s continued commitment to integrating ESG principles into its core operations. A consortium of prominent financial institutions, including KCB, ABSA, Standard Chartered, and Stanbic, has backed this significant investment in sustainable development.
Safaricom CEO Peter Ndegwa emphasized the importance of this deal, stating, “This loan accelerates the advancement of our sustainability agenda. It proves we’ve achieved the targets set with our first sustainability-linked loan, aligning our sustainability goals with our financial strategy.”
Strategic Focus on Technology and Sustainability
The funds will play a crucial role in Safaricom’s evolution into a fully-fledged technology company. Key areas of focus include:
- Reducing carbon footprint
- Advancing gender diversity
- Enhancing Social Impact Monitoring
Safaricom has set an ambitious target to become a Net Zero carbon-emitting company by 2050, with various initiatives already underway to support this vision.
“This latest chapter of sustainability financing, partnered with key regional leaders, will enhance our ESG reporting accountability and help attract more investment to drive growth,” added Ndegwa.
Financial Strategy Aligned with Sustainability Goals
Dilip Pal, Safaricom’s Chief Financial Officer, highlighted the company’s commitment to aligning projects and initiatives with sustainability objectives. “This deal underscores the synergy between our sustainability and financing strategies,” Pal explained.
The transaction involved several key players in the financial sector:
- Standard Chartered: Mandated Lead Arranger, Bookrunner, Global Coordinator, and Sustainability Coordinator
- Kenya Commercial Bank: Mandated Lead Arranger
- Stanbic Bank Kenya and ABSA Bank Kenya: Arrangers
This latest sustainability-linked loan cements Safaricom’s position as a leader in corporate responsibility and sustainable business practices in East Africa. As the company continues to innovate and expand, its commitment to ESG principles remains at the forefront of its strategy, setting a benchmark for other corporations in the region and beyond.
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