Safaricom gets a $117 million loan from a local bank that is tied to sustainability

Safaricom, the largest telecommunications company in Kenya (SCOM.NR), announced on Tuesday that it has accumulated 15 billion shillings ($116.73 million) through the second tranche of a sustainability-linked loan from a consortium of local banks.

The sustainability-linked loan program was initiated by the company, which is in part owned by South Africa’s Vodacom (VODJ.J) and Britain’s Vodafone (VOD.L), when it raised a comparable sum in the initial tranche last year.

The funds will be allocated to investments, such as the conversion of its transmission sites to renewable energy sources in lieu of costly diesel.

Peter Ndegwa, CEO of Safaricom, stated in a statement that this agreement expedites the advancement of our sustainability agenda.

Safaricom stated that Standard Chartered served as the primary arranger and bookrunner for the transaction, which involved four banks: KCB, ABSA, Stanbic, and Standard Chartered Kenya.

($1 is equivalent to 128.5000 Kenyan shillings)