Safaricom rasies $155m in coporate bond after an oversubscription of 275.7%

Kenyan telecom company Safaricom has raised approximately $155 million (KSh20 billion) from the first tranche of its corporate bond. The offer saw an oversubscription of 275.7% in the company’s ongoing Medium-Term Note (MTN) programme.

According to an official statement by the company on Wednesday, investor demand saw applications hit KSh 41.4 billion against the KSh 15 billion target. The announcement follows the closure of the offer period on 5 December 2025 for the first tranche of the Notes issued under its programme to raise approximately $308 million (KSh40 billion).

As a result of the significant interest from investors, the company activated the KSh 5 billion greenshoe option, summing the total allotment for Trache 1 to KSh 20 billion. The greenshoe clause allowed the company to increase the amount due to high demand. 

“Following strong investor demand, Safaricom has exercised the KSh5 billion greenshoe option, thereby increasing the total allotment for Tranche 1 to KSh20 billion, which enables Safaricom to accommodate heightened investor demand and remains within the KSh 40 billion Programme limit approved by the Capital Markets Authority,” part of the statement reads. 

In addition, Safaricom’s green note will be listed on the Nairobi Securities Exchange (NSE) on December 16, 2025, providing an opportunity for investors to start buying and selling the notes on the exchange.

According to the company, the Green Notes have a 5-year tenure and are set to expire on December 11, 2030. It also has a fixed interest rate of 10.4% per annum, payable twice a year, in June and December. The interest income is tax-exempt, making it an attractive investment option for investors.

The process is part of the company’s effort to raise about $308 million (KSh40 billion) through a corporate bond. The potential fund will be deployed to upgrade its infrastructure across its Kenyan and Ethiopian markets.

The bond program puts Safaricom in a position to raise long-term capital through the debt market and issue notes, such as green, social and sustainable notes for the fund raise.

Also Read: Vodacom set to hold majority stake in Safaricom after $1.6bn stake acquisition.

More wins for Safaricom 

The latest fundraising comes following a change in the company’s ownership. 

Vodacom is nearing a deal to hold a majority stake in Safaricom by acquiring 15% of the Government of Kenya’s issued shares, valued at $1.6 billion (KSh204.3 billion). The proposed deal will increase Vodacom’s stake in the telecoms company to 55%. 

The development means that the Kenyan government and general public investors will retain approximately 20% and 25% of Safaricom’s shareholding, respectively.

As part of the deal, Vodacom will acquire Vodafone International Holdings’ 12.5% stake in Vodafone Kenya, thereby becoming the sole owner of Vodafone Kenya.

For Safaricom, the new developments further extend its lead as Kenya’s most preferred mobile network operator. With a $310 million raise in view, the infrastructure upgrade will boost its service offerings and bridge the digital divide in Kenya and Ethiopia.

The telecoms company, partially owned by the government, controls over 65% of the Kenyan market. The company, which launched with 17,000 subscribers in 2000, has now grown to serve more than 50 million customers in Kenya and over 10 million in Ethiopia.