East African Breweries PLC (EABL) has announced that it received applications for Notes amounting to Ksh. 37.9 billion for its Ksh. 11 billion Medium-Term Note issue. This represents an overall subscription of 345% in the corporate bond offer.

The Medium-Term Note, which was arranged by Absa Bank Kenya and Absa Securities Limited will be the biggest of the issued corporate bonds and commercial papers in the Kenyan market. The issue was open for 15 days beginning October 6th, 2021 and closed on October 21 and will be listed for trading on the Nairobi Securities Exchange (NSE) from November 1.

Proceeds from the Notes will be used by East African Breweries to repay certain borrowings taken by the business. This will in turn provide working capital for the Group across East Africa and to refinance certain short term borrowings taken in the ordinary course of business.

Commenting on the bond issue, Absa Bank Managing Director Jeremy Awori said, “The overwhelming success has been delivered on the backdrop of a challenging economic environment and is testament to the resilience our private sector, the growing sophistication of our capital markets, and the important role played by strong financial institutions like Absa in facilitating growth.”

“The fact that this achievement was delivered in the face of depressed economic conditions further signifies the belief investors have in our strategy as this business turns 100 next year,” said EABL Group CEO, Mrs. Jane Karuku. She added that the oversubscription is a demonstration of investors’ confidence in the business which will celebrate its centenary next year.

EAB Group Chief Finance Officer Risper Genga Ohaga said that the application process was delivered through a digital platform, a first in Kenya. The CFO noted that the subscription rate demonstrates that the market has the depth and sophistication to support significant corporate issuances.