East African Breweries PLC (EABL) has concluded the first tranche of its new Ksh. 20 billion Domestic Medium-Term Note Programme, raising a total of Ksh. 16.76 billion after the offer was significantly oversubscribed.
The regional beverage giant received bids worth Ksh. 16.76 billion against its initial target of Ksh. 11 billion, resulting in an overall oversubscription rate of 52.4%.
EABL’s decision to return to the debt market now, launching the new note shortly after the early redemption of its previous Ksh. 11 billion bond (issued in October 2021), was a strategic move to capitalize on favorable prevailing market conditions.
As Group Chief Financial Officer Risper Ohaga explained, interest rates had reduced significantly since the 2021 issuance, making this an opportune moment to issue a new note. The funds raised from this latest corporate bond will be strategically utilized to finance investments, repay debts, refinance short-term borrowings, and provide essential working capital for the group.
Due to the robust demand, EABL exercised a green-shoe option of KES 6 billion, increasing the total allotment to match the total bids received.
- Total Allotment: Ksh. 16.76 billion.
- Allotment Rate: The entire bid amount was accepted, leading to a 100% allotment rate.
- Coupon Rate: Investors will earn an attractive annual coupon rate of 11.80% over the 5-year term.
- Maturity: The Notes will mature on 18 November 2030, with semi-annual interest payments scheduled for 18 May and 18 November each year.
The success of the offer demonstrates EABL’s confidence in the depth of the local capital markets.
The Notes will begin the settlement process this month:
- CDSC Account Upload: Notes will be credited to successful investors’ CDSC accounts by 20 November 2025.
- Listing Date: The Notes are expected to be listed for trading on the Main Fixed Income Securities Market Segment of the Nairobi Securities Exchange (NSE) on 25 November 2025.