Kenya: Safaricom secures second Sh15 billion zero-waste loan

Safaricom has secured an additional Sh15 billion sustainability-linked loan, increasing the total to Sh30 billion following a similar loan arrangement last year.

This funding will support Safaricom’s Environmental, Social, and Governance (ESG) initiatives.

The loan is facilitated by a consortium of Kenya Commercial Bank, ABSA, Standard Chartered, and Stanbic, aimed at enhancing Safaricom’s strategic sustainable investments.

“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,” CEO Peter Ndegwa said.

The facility will help accelerate Safaricom’s transition into a fully-fledged technology company, where it seeks to reduce its carbon footprint and enhance its progress on gender diversity and monitoring its social impact.

The techno plans to be a net-zero carbon emitting company by 2050.

“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,” said Ndegwa.

Chief Finance Officer Dili Pal said the firm is dedicated to making conscious efforts to ensure that our projects and initiatives align with the ESG agenda and the deal highlights its commitment to sustainability and the inherent alignment of the firm’s sustainability and financing strategies.

Standard Chartered serves as the mandated lead arranger and book runner, as well as the global and sustainability coordinator for the transaction.

Kenya Commercial Bank takes the role of lead arranger, with Stanbic Bank Kenya and ABSA Bank Kenya both acting as arrangers.