Trading on the Ksh. 11 billion East African Breweries PLC (EABL) Medium-Term Note has officially begun on the Nairobi Securities Exchange (NSE).

The 5-year, fixed rate instrument is offered at an interest rate of 12.25% payable semi-annually. The offer was opened on October 6 and closed on October 21 and is now listed for trading on the Nairobi Securities Exchange, with an oversubscription of 345%.

EABL’s Medium-Term Note will be the biggest of the issued corporate bonds and commercial papers in the Kenyan market, was arranged by Absa Bank Kenya and Absa Securities Limited.

The funds will be used to finance investments in expanding production, repay debts taken in the ordinary course of business refinance short-term borrowings and provide working capital.

EABL Group Managing Director and CEO Jane Karuku performed the ceremonial bell-ringing ceremony to mark the start of trading. She noted that, “Although we at EABL have been in the capital markets before, this was a different time to ask for money, given the prevailing economic conditions, especially relating to the COVID-19 pandemic. Nevertheless, because EABL has a clear strategic ambition, we considered that investors would believe our story, especially given that we have shaken off a very difficult period the pandemic hit our shores.”

“The more encouraging aspect of this issue is that it was embraced by an impressive mix of individual and corporate investors. Individual and retail investors comprised 32% of applicants while institutional investors covered the rest,” added Mrs. Karuku.

Mr. Jeremy Awori, Managing Director at Absa Bank Kenya commented, “This is an important achievement not only for EABL, Absa Bank and Absa Securities but more so for the private sector and the Kenyan economy at large in delivering a message that is much needed right now: that we are a strong resilient market with the ability to bounce back from global economic shocks and build back better.”