East African Breweries PLC (EABL) has successfully closed the books on the latest major offering under its ambitious Sh20 billion Medium-Term Note Programme.
The offer for the initial tranche, which concluded on November 10, was met with overwhelming demand, far surpassing the company’s initial expectations and painting a bullish picture for the corporate debt market.
Investors flocked to the opportunity, submitting applications totaling a substantial Sh16.76 billion against an original target of Sh11 billion. This enthusiastic response resulted in a remarkable subscription rate of 152.4%, signalling strong market belief in EABL’s financial stability and future prospects.
Capitalizing on this robust demand, EABL sought and promptly received regulatory approval from the Capital Markets Authority (CMA) to increase the allotment for this tranche, fully utilizing a pre-approved over allotment option to accept the entire Sh16.76 billion worth of bids. This move ensured that all applicants were fully accommodated, resulting in a 100% allotment rate for participating investors.
The five-year notes, set to be issued on 18th November 2025, carry an annual coupon rate of 11.80%. This fixed return will be paid out to investors semi-annually on the 18th of May and November each year, culminating with the maturity of the notes on 18th November 2030.
The process for investors is streamlined, with the notes scheduled to be credited directly to their Central Depository & Settlement Corporation (CDSC) accounts by 20th November 2025. Furthermore, providing an avenue for liquidity, the notes are proposed to be listed on the securities exchange on 25th November 2025.
This successful offering was facilitated by a consortium of leading financial institutions, with Absa Bank Kenya PLC and Absa Securities Limited acting as the joint arrangers and placing agents.
The transaction was supported by MTC Trust & Corporate Services Limited as the Note Trustee, ensuring the interests of the investors are protected, while legal and accounting counsel were provided by Coulson Harney LLP and PricewaterhouseCoopers (PwC), respectively.
