Safaricom Plc, Kenya’s largest company, is looking to raise as much as $150 million of debt to refinance loans and fund infrastructure projects, according to Chief Finance Officer Dilip Pal.
(Bloomberg) — Safaricom Plc, Kenya’s largest company, is looking to raise as much as $150 million of debt to refinance loans and fund infrastructure projects, according to Chief Finance Officer Dilip Pal.
Standard Chartered Bank Plc is among the advisers for the financing, Chief Executive Officer Peter Ndegwa said in an interview along with Pal, after announcing the company’s financial results in Nairobi on Thursday. Part of the funds will be invested in Kenya, where the company is based, and in Ethiopia where it is rolling out operations including its lucrative M-Pesa mobile money service, Pal said.
“We are in the market” currently for the financing, Pal said without giving further details.
Safaricom ramped up spending to expand after more than a decade of concentrating on the Kenyan market, where it’s a leader in voice, data and mobile finance products. It’s net income for the year through March dropped 10.6% as costs related to expanding in Ethiopia curbed earnings.
READ: Safaricom Posts Biggest Profit Drop in 12 Years on Ethiopia Cost
The wireless carrier is also in talks with lenders including the Commercial Bank of Ethiopia to back its planned mobile credit and savings services in that country, Ndegwa said.
–With assistance from Ramah Nyang.
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