SAFARICOM PARTNERS WITH KENYAN BANKS TO FUND SUSTAINABILITY AGENDA

Safaricom has announced the closure of a multi-billion Sustainability Linked Loan (SLL) to strengthen its Environmental, Social and Governance (ESG) agenda.

The KES 15 billion deal, which is upscalable to KES 20 billion by accordion, is the largest ESG linked loan facility ever undertaken in East Africa, and the first of its kind for Safaricom as well as the first Kenya Shilling denominated SLL in the market.

The funding provided by a consortium of four banks consisting of Standard Chartered, Standard Bank, ABSA, and KCB will enable Safaricom to access funding based on its progressive achievement of set milestones across key ESG areas.

“In line with our focus to advance our sustainable business agenda, this funding will unlock our ability to create more diversified investments that will support transformative investments in new technologies, systems and services that allow us to comprehensively manage our ESG footprint,” said Peter Ndegwa, Chief Executive Officer, Safaricom PLC.

The investment is also expected to contribute to the growth of Kenya’s sustainable financing market, which remains a key priority for the Government of Kenya as part of Vision 2030.

The SLL will help Safaricom deepen its focus on strategic sustainable investments as it continues to pursue more initiatives aligned to its sustainable business strategy as part of its ongoing transition to becoming a fully-fledged technology company by 2025.

The deal also paves the way for further sustainability financing in the region as companies seek to become more accountable for their ESG reporting and financing.