East African Breweries Plc (EABL) has hosted a bell-ringing ceremony at the Nairobi Securities Exchange (NSE) to mark the successful listing of the first tranche of its Medium-Term Note (MTN) Programme.
The issuance was met with extraordinary market demand, successfully raising Ksh. 16.76 billion after being oversubscribed by an impressive 52.4%. The regional beverage giant received bids totaling Ksh. 16.76 billion against its initial target of Ksh. 11 billion, prompting the company to exercise a KES 6 billion “green-shoe” option to accommodate the full amount bid.
The decision to issue the new note was a strategic move to capitalize on prevailing market conditions, specifically noting the significant reduction in interest rates since the company’s previous Ksh. 11 billion bond issuance in 2021.
For investors, the notes offer an attractive 11.80% annual coupon rate paid semi-annually over the five-year term, with maturity set for November 18, 2030. The funds raised from this capital injection will be strategically utilized for financing investments, repaying existing debts, refinancing short-term borrowings, and providing essential working capital to drive expansion across East Africa.
EABL Group MD and CEO, Jane Karuku, lauded the performance: “Today’s milestone reflects the confidence that investors continue to place in EABL’s performance and strategic direction. The success of this first tranche is a major endorsement of our growth agenda and illustrates a maturing capital market, where investors are increasingly willing to back long-term corporate instruments from stable and reputable issuers.”
EABL’s successful listing occurs against a backdrop of increasing corporate engagement with local debt markets, signaling a strong shift toward large-scale domestic financing.
Coinciding with EABL’s listing, Safaricom Plc has officially entered the market with its own ambitious debt offering. The telecommunications giant is currently floating the inaugural tranche of its Ksh. 40 billion Domestic MTN Programme, offering a KES 15 billion Green Bond (with a Ksh. 5 billion ‘Greenshoe’ option). This marks Kenya’s largest green bond issuance to date and is uniquely the first to allow for mobile-based subscriptions (via USSD *483*810#), lowering the barrier to entry for retail investors with a minimum investment of Ksh. 50,000.
The Safaricom bond offers investors a competitive 10.4% tax-free annual interest rate. Proceeds from the Green Bond are earmarked for sustainable projects, including expanding 4G/5G network infrastructure, accelerating fixed broadband delivery, and scaling FinTech solutions beyond M-PESA.