Safaricom Inks Deal with a Consortium of Kenyan Banks to Fund Sustainability Agenda

Safaricom Inks Cope with a Consortium of Kenyan Banks to Fund Sustainability Agenda

Safaricom Inks Cope with a Consortium of Kenyan Banks to Fund Sustainability Agenda 

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

The KES 15 billion deal, which is up scalable to KES 20 billion by accordion, is the biggest ESG-linked mortgage facility ever undertaken in East Africa and the primary of its variety for Safaricom in addition to the primary Kenya Shilling-denominated SLL available in the market.

“In keeping with our focus to advance our sustainable enterprise agenda, this funding will unlock our capacity to create extra diversified investments that may assist transformative investments in new applied sciences, techniques and companies that permit us to comprehensively handle our ESG footprint,” mentioned Peter Ndegwa, Chief Govt Officer, Safaricom PLC.

The funding can also be anticipated to contribute to the expansion of Kenya’s sustainable financing market, which stays a key precedence for the Authorities of Kenya as a part of its Imaginative and prescient 2030 plans.

“This deal is a big milestone for Safaricom because it aligns our monetary technique with our Sustainability agenda, a mirrored image of our dedication to remodeling lives by partnering for development,” Mr Ndegwa mentioned. 

The funding is supplied by a consortium of 4 banks consisting of Customary Chartered Financial institution, Stanbic Financial institution, ABSA Financial institution and KCB Financial institution, and can allow Safaricom to entry funding based mostly on its progressive achievement of set milestones throughout key ESG areas.

Safaricom Inks Cope with a Consortium of Kenyan Banks to Fund Sustainability Agenda

“This important milestone signifies the continued momentum in direction of constructing a extra strong, sustainable, and diversified monetary ecosystem within the area,” mentioned Kariuki Ngari, Chief Govt Officer, Customary Chartered Financial institution Kenya on behalf of the consortium.

“Throughout the market, we’re seeing accelerated curiosity in sustainable finance merchandise alongside extra thought-about methods for local weather initiatives. We’re keen about this partnership with Safaricom because it positions Kenya as a regional chief in inclusive and accountable funding,” he mentioned.

The SLL will assist Safaricom deepen its give attention to strategic sustainable investments because it continues to pursue extra initiatives aligned with its sustainable enterprise technique as a part of its ongoing transition to changing into a fully-fledged know-how firm by 2025. Specifically, the corporate will give attention to decreasing its emissions to succeed in Internet Zero targets, monitoring gender variety, and monitoring social equality impacts.

The deal additionally paves the best way for additional sustainability financing within the area as firms search to develop into extra accountable for his or her ESG reporting and financing.

Customary Chartered Kenya acted because the World Coordinator, Sustainability Coordinator and Mandated Lead Arranger for the deal. Different lenders concerned within the deal had been Kenya Business Financial institution who acted as Mandated Lead Arranger, in addition to Stanbic Financial institution Kenya and ABSA Financial institution Kenya who each acted as Arrangers.