Safaricom Plc has signed a Ksh 15 billion loan with four banks to fund its sustainable investments.
The Sh15 billion deal, which is scalable to Sh20 billion, becomes the largest ESG-linked loan facility in the East Africa region.
Standard Chartered, Standard Bank, ABSA, and KCB are the funding groups.
Among the targets are tasking the operator with deepening its focus on strategic sustainable investments to reach net zero targets, tracking gender diversity and monitoring social equality impact.
Safaricom aims to become a fully-fledged technology company by 2025 and has made a sustainable business approach part of the ongoing transition.
Safaricom’s CEO, Peter Ndegwa, stated, “This deal is a significant milestone for Safaricom as it aligns our financial strategy with our sustainability agenda, a reflection of our commitment to transforming lives by partnering for growth.”
Kariuki Ngari, CEO of Standard Chartered Bank Kenya, commented, “We are enthusiastic about this partnership with Safaricom as it positions Kenya as a regional leader in inclusive and responsible investment, reflecting the growing interest in sustainable finance products and climate initiatives.”
Standard Chartered Kenya played a pivotal role as the Global Coordinator, Sustainability Coordinator, and Mandated Lead Arranger for the deal. Kenya Commercial Bank acted as Mandated Lead Arranger, while Stanbic Bank Kenya and ABSA Bank Kenya served as Arrangers.