Safaricom's second tranche of its five-year medium-term note worth 4.5 billion shillings was fully subscribed, the Kenyan mobile phone operator's chief executive said on Thursday.

It came in at a yield of 7.756 percent, Bob Collymore told Reuters, adding no other fundraising activities were planned at the moment.

The company launched the first tranche of a 12 billion shilling medium-term corporate bond issue in 2009 to fund investments. It raised 7.5 billion shillings after the issue was oversubscribed.

Safaricom is part owned by Britain's Vodafone and is the region's biggest firm by market capitalisation. It is often the most traded stock on the Nairobi Stock Exchange.

The entry of India's Bharti Airtel into Kenya last year as part of an Africa-wide deal to acquire the assets of Kuwait's Zain has led to a price war among operators.

Safaricom cut its calling rates in August after Airtel slashed its own rates by more than half.

The price war unnerved investors who have sent Safaricom's shares down by about a quarter since the price war broke out in August last year.

Safaricom traded flat at 4.30 shillings a share.