Second-Party Opinion Download

Sustainalytics is of the opinion that the Safaricom Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Energy Efficiency, Renewable Energy, Green Buildings, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Socio-economic Advancement and Empowerment, Access to Digital Services and Access to Healthcare – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 7, 8, 9, 11, 12, 14 and 15.

PROJECT EVALUATION AND SELECTION

Safaricom’s Sustainable Finance Committee comprises members from the Treasury, Finance, Technology, Investors Relations, Risk, and Sustainable Business and Social Impact department. The committee will be responsible for the project evaluation and selection process under the Framework. Safaricom manages socio-environmental risks according to its Enterprise Risk Management policy and system. Sustainalytics considers the project selection process to be aligned with market practice.

MANAGEMENT OF PROCEEDS

Safaricom’s Sustainable Finance Committee will track the net proceeds on a portfolio basis using an internal tracking system. Safaricom intends to allocate proceeds within 24 months after each issuance. Pending full allocation, proceeds will be temporarily invested in cash and short-term liquidity accounts. This is aligned with market practice.

REPORTING

Safaricom commits to report on the allocation of proceeds annually until full allocation. The allocation report will be made publicly available on the company’s website, except for loan instruments, in which case Safaricom will share the allocation reports directly with investors. In addition, Safaricom intends to report on relevant impact metrics. Sustainalytics considers the allocation and impact reporting commitments as aligned with market practice.