East African Breweries plc (EABL) has today announced an interest payment of Ksh. 673.8 million to bond holders of its Ksh. 11 billion medium-term corporate bond.

EABL will pay the interest on April 28, 2022, to bondholders on record as of April 13, 2022 in accordance with the terms and conditions of the company’s prospectus for the bond issue Programme.

The five-year, fixed-rate instrument was offered at an interest rate of 12.25 per cent payable semi-annually. The bond was issued in October 2021 and saw investors bid Ksh. 37.9 billion in the issuing round, representing an oversubscription of 275 per cent and signaling renewed investor confidence in a previously troubled local bond market.

EABL Group Managing Director and CEO, Jane Karuku said: “We are delighted to announce that EABL will be paying the first interest coupon of 12.25 percent (Ksh. 673.8 million) to bondholders of our recent note. The bond proceeds have been instrumental in supporting our capacity expansion strategy and contributing to our overall performance. As we celebrate 100 years since this company was founded, we thank the investor community for continued trust and support to our business.”

The EABL Medium-Term Note was ranked among the top corporate deals transacted in Africa in 2021 by the Bond and Loans Awards. It named the EABL bond the Local Currency Corporate Bond Deal of the Year.

Trading on the Ksh. 11 billion EABL Medium-Term Note has officially started on the Nairobi Securities Exchange (NSE) in November last year. The offer was opened on October 6 and closed on October 21 with an oversubscription of 345%.

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