(3 Minutes Read)
According to Economist Chachi Lutu, the corporate bond market in Kenya has been inactive and could pose an uphill task for Telco in attracting investors upon issuance.
Telco service provider Safaricom has hinted at the possibility of issuing a green bond in its efforts to promote a consistent flow of capital. As the sustainability conversation takes over the centre stage for business operations in the country, corporations are being advised to broaden their source of capital to fund impact-related projects.
This is no different from Safaricom, which has proposed a framework that will aim at the capital market for funding through the allocation of the green Bond.This comes after a 15 billion shilling link sustainability link facility that was received from four financial institutions that are linked to the funding of greening of the Telco’s network.
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However, according to Economist Chachi Lutu, the corporate bond market in Kenya has been inactive and could pose an uphill task for Telco in attracting investors upon issuance. Safaricom hopes to navigate through by targeting impact-driven investors who will stem down to the use of proceeds through impactful projects that will enhance their ESG and sustainability agenda.
