How to Invest in Safaricom’s New KSh 15B Green Notes With Guaranteed Tax-Free Returns

James Simiti
By James Simiti
Business

How to Invest in Safaricom’s New KSh 15B Green Notes With Guaranteed Tax-Free Returns

Safaricom has officially opened subscriptions for its highly anticipated corporate bond as it seeks to expand operations in Kenya and Ethiopia. The telco recently secured regulatory approval to raise up to KSh 40 billion through a Medium-Term Note Programme, positioning the investment opportunity as one of the most attractive in the market this year.

In its first tranche, Safaricom is targeting KSh 15 billion through fixed-rate green notes, with the option of accepting an extra KSh 5 billion should investor demand exceed expectations. The company is offering a 10.4% annual return, completely tax-free, making the notes especially appealing to both retail and institutional investors.

“We plan to raise up to KES 40 billion through the Safaricom Domestic Medium Term Note. The first phase is for KSh 15 billion, with an option to accept an additional KSh 5 billion if there’s extra demand,” Safaricom announced.

The green bond carries a five-year tenor, maturing on December 11, 2030. Interest payments will be made twice a year, on December 11 and June 11, throughout the duration of the bond.

Minimum Investment and Requirements

To participate, investors must contribute at least KSh 50,000. Additionally, all applicants must have an active Central Depository and Settlement Corporation (CDSC) account, which is required for all capital market investments in Kenya.

Safaricom has provided three different channels through which investors can apply.

1. Applying via USSD – 483810#

Safaricom has enabled a simple USSD-based method for those using mobile money.

Steps:

  1. Ensure you have a valid CDSC account.
  2. Confirm you have enough balance on your mobile money wallet.
  3. Dial *483*810#.
  4. Select and read the Terms and Conditions of the offer.
  5. Accept the terms and choose “New Application.”
  6. Follow the prompts to complete your application.
  7. You will receive a payment prompt, then an SMS or email confirming your application status.

2. Applying via the Online Portal

Investors can also apply digitally through Safaricom’s dedicated online portal.

Steps:

  1. Visit the Safaricom PLC notes portal.
  2. Read and understand the Terms & Conditions.
  3. Ensure you have a CDSC account. If not, contact your broker to open one.
  4. Click “Apply for Notes.”
  5. If you have applied before, enter your previous details to add another application.
  6. New investors can start afresh by selecting “New Application.”
  7. Fill in and submit the application form.
  8. Make payment and upload your payment proof (EFT or bank transfer).
  9. The Data Processing Agent will verify your documents.
  10. Updates will be sent to your email or phone number.

3. Applying Using Physical Forms

For those who prefer manual applications:

  1. Download a serialised physical form, or
  2. Collect one from authorised accepting agents or image registrars.
  3. Fill in the form as instructed.
  4. Attach all required supporting documents.
  5. Submit the completed form to any of the listed placing agents.

Additional Information

Safaricom has also published a detailed Pricing Supplement that outlines the bond structure, fiscal agents, and all technical information investors may require before subscribing.

Also Read: Lorna Kathambi: Daystar University Death Takes Unexpected Twist After Fresh Video Surfaces

How to Invest in Safaricom’s New KSh 15B Green Notes With Guaranteed Tax-Free Returns

Recent Articles