Safaricom signs a deal worth Sh15 billion with Kenyan banks to support ESG Agenda

Safaricom has entered into an agreement with a consortium of Kenyan banks to support its environmental, social, and governance (ESG) agenda.

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.

“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 Peter Ndegwa, Chief Executive Officer (CEO), Safaricom PLC.

The investment is also expected to contribute to the growth of Kenya’s sustainable financing market, which remains a key priority for the Government of Kenya as part of its 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,” Ndegwa said. 

Standard Chartered Kenya acted as the global coordinator, sustainability coordinator, and mandated lead arranger for the deal, while KCB acted as the mandated lead arranger. Standard Bank and ABSA Bank acted as arrangers.

“This significant milestone indicates the continued momentum towards building a more robust sustainable, and diversified financial ecosystem in the region,” said Kariuki Ngari, CEO, Standard Chartered Bank Kenya on behalf of the consortium.

“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,” he said.

Source; https://www.capitalfm.co.ke/business/2023/09/safaricom-in-a-sh15-billion-deal-with-kenyan-banks-to-fund-sustainable-programs/

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