Safaricom has secured another Ksh 15 billion Sustainability Linked Loan, bringing the total loan facility to Ksh30 billion after announcing the closure of a similar amount last year.
The loan facility, the largest in the East African region, is set to advance Safaricom’s Environmental, Social, and Governance agenda (ESG). A consortium of four banks, KCB, ABSA, Standard Chartered, and Stanbic, has provided the funding, which will scale Safaricom’s strategic sustainable investments.
“This deal paves the way for the advancement of our sustainability agenda. This funding will be channelled towards strategic and significant investments in technology and services, which will enable us to unlock our ability to transform lives by elevating our ESG objectives,” said Peter Ndegwa, CEO of Safaricom.
The facility is expected to accelerate Safaricom’s transition into a fully-fledged technology company. It seeks to reduce its carbon footprint, enhance its progress on gender diversity, and monitor its social impact.
Safaricom plans to be a Net Zero carbon emitting company by 2050, and programmes have been put in place to achieve this.
Safaricom’s Environmental, Social, and Governance agenda
“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,” added Mr Ndegwa.
“Safaricom is dedicated to making conscious efforts to ensure that our projects and initiatives align with the ESG agenda. This deal highlights our commitment to sustainability and the inherent alignment of our sustainability and financing strategies,” added, Dilip Pal, CFO, Safaricom.
Standard Chartered continues to act as Mandated Lead Arranger and Bookrunner, Global Coordinator and Sustainability Coordinator for the transaction, while Kenya Commercial Bank acted as Mandated Lead Arranger, as well as Stanbic Bank Kenya and ABSA Bank Kenya who both acted as Arrangers.
Safaricom sustains over 1.2 million jobs, contributes Ksh909.5 billion into Kenyan economy in a year
