Safaricom has raised a Ksh15 billion sustainability-linked loan from four local banks for its Environmental, Social, and Governance (ESG) agenda.
The new loan brings the company’s total sustainability loan to Kshs 30 billion after receiving a similar amount last year.
The cash has been provided by four local banks, including Kenya Commercial Bank, ABSA, Stanbic Bank, and Standard Chartered.
“This deal helps to accelerate the advancement of our sustainability agenda. It is a testament that we have achieved the targets we set out to achieve with the first one where we aligned our sustainability agenda with our financial strategy,” noted Safaricom CEO Peter Ndegwa.
Safaricom says the Sustainability Linked Loan, which is the largest of its kind in East and Central Africa, will be channeled to strategic sustainable investments. One of the key strategic investments is the conversion of all transmission sites from expensive diesel to renewable energy.
With strategic sustainable investments, the telco aims to address its high carbon footprint and transition to net zero by 2050.
“We are delighted that we have tapped into partnerships with key leaders in the region in the latest chapter of sustainability financing. It will improve our accountability measures on ESG reporting where we will have an opportunity to attract more investment and growth,” said Ndegwa.
Safaricom’s Chief Financial Officer, Dili Pal, noted that the telco is devoted to making deliberate efforts to ensure its initiatives and projects align with the ESG agenda. “The deal highlights its commitment to sustainability and the inherent alignment of the firm’s sustainability and financing strategies,” added Dili.
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