Safaricom has inked a Ksh15 billion pact with a consortium of Kenyan Banks to fund a sustainability agenda.
The Sustainability Linked Loan (SLL), upscalable to Ksh20 billion by accord, aims to strengthen the firm’s Environmental, Social and Governance (ESG) agenda.
This is the largest ESG-linked loan facility undertaken in the East Africa region.
The funding provided by a consortium of four banks consisting of Standard Chartered, Standard Bank, ABSA, and KCB will enable Safaricom to access funding based on its progressive achievement of set milestones across key ESG areas.
“In line with our focus to advance our sustainable business agenda, this funding will unlock our ability to create more diversified investments that will support transformative investments in new technologies, systems and services that allow us to comprehensively manage our ESG footprint,” said Safaricom PLC Chief Executive Officer (CEO) Peter Ndegwa.
In addition, the investment aims to contribute to the growth of Kenya’s sustainable financing market, which remains a key priority for the government’s Vision 2030 plans.
“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,” added Ndegwa.
Speaking on behalf of the lenders in the deal, Standard Chartered Bank Kenya CEO Kariuki Ngari noted that the deal is a significant milestone signaling a continued momentum geared towards building a more sustainable and diversified financial ecosystem in the region.
“Across the market, we are seeing accelerated interest in sustainable finance products alongside more considered strategies for climate initiatives. We are enthusiastic about this partnership with Safaricom as it positions Kenya as a regional leader in inclusive and responsible investment,” said Ngari.
In the deal, Standard Chartered Kenya acted as the Global Coordinator, Sustainability Coordinator and Mandated Lead Arranger while Kenya Commercial Bank acted as Mandated Lead Arranger. Standard Bank and ABSA Bank acted as Arrangers.
The deal also paves the way for further sustainability financing in the region as companies seek to become more accountable for their ESG reporting and funding.