Safaricom first bond offer oversubscribed by over 175%
Pedestrians walk outside the Safaricom mobile phone customer care centre during the launch of its 5G internet service in the central business district of Nairobi, Kenya October 27, 2022. REUTERS
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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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