Safaricom Secures KES 15 Billion Sustainability Loan for ESG Agenda

Editorial Desk
By Editorial Desk 3 Min Read

Telecommunications company, Safaricom has closed a KES 15 billion Sustainability Linked Loan (SLL) to support its Environmental, Social, and Governance (ESG) agenda.

The loan, which can be expanded to KES 20 billion, is the largest ESG-linked loan facility in East Africa and the first of its kind for Safaricom. The funding will be used to invest in new technologies, systems, and services to manage the company’s ESG footprint.

Notably, a consortium of esteemed banks, including Standard Chartered, Standard Bank, ABSA, and KCB, joined forces to provide the funding for this unprecedented endeavor.

Peter Ndegwa, the Chief Executive Officer of Safaricom, expressed enthusiasm about the company’s sustainable business agenda, stating, “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.”

The loan facility will enable Safaricom to access funding based on its progressive achievement of predefined milestones across key ESG areas.

Kariuki Ngari, the Chief Executive Officer of Standard Chartered Bank Kenya, emphasized the significance of this milestone, stating, “This significant milestone indicates the continued momentum towards building a more robust, sustainable, and diversified financial ecosystem in the region.”

Safaricom’s primary focus will be on reducing its emissions to achieve Net Zero targets, tracking gender diversity, and monitoring social equality impacts. Mr. Ndegwa further added, “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.”

The implications of this funding extend beyond Safaricom, as it is expected to contribute to the growth of Kenya’s sustainable financing market, a key priority for the Government of Kenya as part of its Vision 2030 plans.

The deal serves as a pivotal moment for both Safaricom and Kenya’s sustainable financing market, paving the way for further sustainability financing in the region as companies strive to become more accountable for their ESG reporting and financing.

With the support of the consortium of banks, Safaricom is poised to make significant strides in its ESG agenda, solidifying its position as a leader in sustainable business practices within the East African region.

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