Safaricom has announced a groundbreaking financial move that reaffirms its commitment to the Environmental, Social and Governance (ESG) agenda by successfully closing a multi-billion Sustainability Linked Loan (SLL) worth Sh15 billion, a deal that is upscalable to Sh20 billion in a landmark development.

This monumental financial agreement represents the largest ESG-linked loan facility ever executed in East Africa, marking a significant milestone for both Safaricom and the Kenyan financial market.

Peter Ndegwa, Chief Executive Officer of Safaricom PLC, expressed the significance of this financial commitment.

"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," Ndegwa said.

This pioneering endeavour is not only a momentous move for Safaricom but also a testament to Kenya's growing importance in the sustainable financing market.

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It aligns perfectly with the Government of Kenya's Vision 2030 plans, which prioritize the development of a sustainable financial ecosystem within the country.

Ndegwa reiterated the company's dedication to transforming lives through responsible business practices.

"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 stated.

The Sh15 billion funding for this initiative is provided by a consortium of four reputable banks: Standard Chartered, Standard Bank, ABSA, and KCB.

This collaboration empowers Safaricom to access funding based on its progressive achievement of set milestones across key ESG areas.

Kariuki Ngari, Chief Executive Officer of Standard Chartered Bank Kenya, speaking on behalf of the consortium, affirmed the importance of this partnership, saying, "This significant milestone indicates the continued momentum towards building a more robust sustainable, and diversified financial ecosystem in the region.

Ngari further noted the prevailing trend across the market, stating, "Across the market, we are seeing accelerated interest in sustainable finance products alongside more considered strategies for climate initiatives."

He expressed enthusiastic support for the partnership with Safaricom, recognizing its role in positioning Kenya as a regional leader in inclusive and responsible investment.

The Sustainability Linked Loan (SLL) will enable Safaricom to intensify its focus on strategic sustainable investments as it progresses towards becoming a fully-fledged technology company by 2025.

Key areas of focus include reducing emissions to achieve Net Zero targets, gender diversity tracking, and monitoring social equality impacts.

Furthermore, this pioneering financial agreement sets a precedent for sustainability financing within the region, as more companies seek to enhance accountability in their ESG reporting and financing.

Standard Chartered Kenya played an important role as the Global Coordinator, Sustainability Coordinator, and Mandated Lead Arranger for the deal, with Kenya Commercial Bank acting as Mandated Lead Arranger.

Standard Bank and ABSA Bank participated as Arrangers, solidifying the collaborative effort behind this historic financial endeavour.