Site icon MONEYINAFRICA

EABL raises Sh37.9 billion for expansion, repayment of debt

EABL raises Sh37.9 billion for expansion, repayment of debt

EABL General Managing Director Jane Karuku. [Wilberforce Okwiri, Standard] East African Breweries ’ medium-term note has been oversubscribed by 245 per cent with the brewer receiving Sh37.9 billion.

The brewer was looking to raise Sh11 billion in debt in an offer that was open for 15 days beginning October 6, 2021.

EABL Group CEO Jane Karuku said the oversubscription is a demonstration of investors’ confidence in the company.

“The fact that this achievement was delivered in the face of depressed economic conditions further signifies the belief investors have in our strategy as this business turns 100 next year,” said Mrs Karuku. READ MORE

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.

The Notes will begin trading at the Nairobi Securities Exchange (NSE) in the coming week.

In May, EABL announced that it would retire its outstanding Sh6 billion corporate bond early, saving on interest payments.

The company indicated its intention to clear part of the Sh11 billion medium-term note on June 28 and suspended the trading of the bond at the Nairobi bourse.

Risper Genga Ohaga, EABL’s Group CFO noted that the application process was delivered through a digital platform, a first in Kenya.

"EABL is a robust player in the capital markets and this expression of confidence will support our strategy going forward. The subscription rate demonstrates that the market has the depth and sophistication to support significant corporate issuances,” said Ohaga.

The five-year, fixed rate instrument is offered at an interest rate of 12.25 per cent payable semi-annually. The offer was opened on October 6 and closed on October 21 and will be listed for trading on the Nairobi Securities Exchange from November 1.The Medium-Term Note was arranged by Absa Bank Kenya Plc and Absa Securities Limited.

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.
Exit mobile version