Safaricom, Kenya’s largest telco, has raised KES 20 billion ($154 million) from the first tranche of the medium-term note (MTN) programme announced in November after investors offered nearly three times its target.
The company had initially sought to raise KES 15 billion ($116 million), but overwhelming demand pushed the subscription rate to 275.7%, prompting Safaricom to activate a KES 5 billion ($38 million) “greenshoe option”—a clause that allows it to absorb part of the excess bids.
“Safaricom has received applications for Notes amounting to approximately KES 41.4 billion, against the original target of KES 15 billion, which represents an overall subscription rate of 275.7%,” Safaricom said in a statement on Wednesday.
The strong appetite for Safaricom’s debt signals renewed confidence in Kenya’s economy, proving that despite global economic pressures, local investors have deep pockets and are eager to back blue-chip companies that offer stable returns.
The Capital Markets Authority (CMA), Kenya’s commodities market regulator, first approved Safaricom’s broader KES 40 billion ($308 million) borrowing programme in November. Safaricom then opened sales for the first batch of notes, known as “Tranche 1,” which officially closed on 5 December.
“This milestone is a testament to the vibrant ecosystem and strong liquidity,” the Nairobi Securities Exchange (NSE) said in a statement on Wednesday, noting the market’s ability to fund major corporate goals.
This sale is just the first phase of the company’s larger borrowing plan. The regulatory approval allows Safaricom to return to the market in the future to raise the rest of the KES 40 billion ($308 million) programme, potentially issuing green or social bonds to fund sustainable projects.
The notes from this sale will be listed on the NSE, offering investors a tradable asset from Kenya’s largest corporation.