Stanbic Bank Kenya has partnered with Safaricom PLC, acting jointly as Lead Advisor, Sponsoring Broker, Placing Agent, and Receiving Bank for Safaricom’s unprecedented KES 40 billion Domestic Medium-Term Note (DMTN) Programme. This initiative marks the largest DMTN ever authorised by the Capital Markets Authority (CMA) in Kenya.
The first tranche of the programme, a five-year Green Note issuance valued at KES 15 billion, with an additional KES 5 billion greenshoe option, is now open for subscription. The offer is scheduled to close on 5 December.
This milestone issuance represents a major step in expanding Kenya’s sustainable finance infrastructure and offers institutional and retail investors a transparent, fixed-income opportunity aligned with environmental, social and governance (ESG) principles.
Stanbic emphasised that the deal underscores the strength and consistency of its Debt Capital Markets division, which remains a leader across East Africa. The bank has a strong track record in pioneering sustainable finance instruments: it arranged Kenya’s first corporate green bond in 2019, and led Tanzania’s inaugural green bond issuance in 2023.
Through this collaboration with Safaricom, Stanbic reaffirms its commitment to advancing the region’s green finance ecosystem, leveraging its expertise to support major ESG-aligned investments.
The partnership supports Safaricom’s broader sustainability agenda, signalling a commitment to environmentally responsible funding. By choosing a green bond structure, the company aligns its funding strategy with long-term environmental goals while providing investors with an opportunity to contribute to sustainable development in Kenya and the region.
This issuance is expected to deepen the capital markets in East Africa and encourage other corporates to follow suit, reinforcing green finance as a viable and impactful funding route.
- For investors: The Green Note presents a stable, fixed-income investment option tied to ESG-related financing, appealing to institutions and individuals seeking sustainable investments.
- For the market: The KES 40 billion DMTN sets a new benchmark for domestic corporate financing in Kenya, potentially encouraging greater participation in the fixed income and green bond markets.
- For sustainable finance: This deal strengthens the foundation for future green and ESG-linked issuances in Kenya and the broader East African region.
