Safaricom PLC has received an overwhelming response for the first tranche of its newly launched medium‑term note programme.
The first tranche was initially sized at Ksh.15 billion, with a green shoe option to raise an additional Ksh.5 billion, in case investor demand exceeded expectations.
Following the closure of the offer period on December 5th, Safaricom says it has received applications totalling about Ksh.41.4 billion. This, even larger than the Ksh.40 billion‑shilling ceiling set by the capital markets for the entire programme.
As a result, and to accommodate investor interest, Safaricom has exercised the Ksh.5 billion‑shilling green shoe option, raising the allotment for Tranche 1 to Ksh.20 billion.
The telco will refund the Ksh.21.4 billion to investors. The oversubscription speaks to strong investor confidence in Safaricom’s financial strategy and increased market liquidity as well as growing appetite for corporate bonds.
The bond will begin trading at the Nairobi Securities Exchange on Tuesday, the 16th of December this year.
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