Safaricom CEO Peter Ndegwa
Safaricom (NSE: SCOM) has successfully secured an additional KES 15 billion in Sustainability Linked Loans, bringing its total funding for sustainability initiatives to KES 30 billion. This marks a significant milestone in the company’s commitment to advancing its Environmental, Social, and Governance (ESG) agenda.
The new loan facility, which is the largest of its kind in the East African region, was secured from a consortium of four banks: KCB, ABSA, Standard Chartered, and Stanbic. This funding will further enable Safaricom to enhance its strategic investments focused on sustainability, a core aspect of its long-term growth strategy.
Peter Ndegwa, CEO of Safaricom, emphasized the importance of this funding, stating, “This deal helps to accelerate the advancement of our sustainability agenda. It is a testament to our achievements with the first loan, where we successfully aligned our sustainability goals with our financial strategy.”
The funding will support Safaricom’s transition towards becoming a fully-fledged technology company, focusing on reducing its carbon footprint, enhancing gender diversity, and monitoring its social impact. The company has set a target to achieve Net Zero carbon emissions by 2050, implementing various programs to reach this goal.
Ndegwa further highlighted the significance of partnerships in this venture, saying, “We are delighted to tap into partnerships with key leaders in the region in this latest chapter of sustainability financing. It will improve our accountability measures on ESG reporting and create opportunities to attract more investment and growth.”
Dilip Pal, CFO of Safaricom, reiterated the company’s commitment to sustainability, stating, “Safaricom is dedicated to ensuring that our projects align with the ESG agenda. This deal highlights the inherent alignment of our sustainability and financing strategies.”
Standard Chartered acted as the Mandated Lead Arranger and Bookrunner, along with its role as Global Coordinator and Sustainability Coordinator for the transaction. KCB also served as Mandated Lead Arranger, while Stanbic Bank Kenya and ABSA Bank Kenya acted as Arrangers.
This latest funding initiative reflects Safaricom’s ongoing dedication to integrating sustainability into its operations, ensuring a positive impact on the environment and society as it continues to grow and innovate in the telecommunications sector.