East African Breweries Limited (EABL)’s KSh 11 billion corporate bond has started trading at the Nairobi Securities Exchange
The five-year, fixed-rate instrument is offered at an interest rate of 12.25% payable semi-annually
The funds will be used to finance investments in expanding production and repay debts
East African Breweries Plc’s KSh 11 billion Medium-Term Note has been listed on the Nairobi Securities Exchange and has begun trading. EABL’s corporate bond has started trading at the NSE. While performing the ceremonial bell-ringing ceremony to mark the start of trading at the exchange, the company’s Group Managing Director and CEO Jane Karuku described the Note as the company’s most successful capital-raising issue. “Although we at EABL have been in the capital markets before, this was a different time to ask for money – given the prevailing economic conditions, especially relating to the COVID-19 pandemic,” she said. “Nevertheless, because EABL has a clear strategic ambition, we considered that investors would believe our story, especially given that we have shaken off a very difficult period the pandemic hit our shores,” said Karuku. As previously reported by TUKO.co.ke , the issue is the single largest non-infrastructure corporate bond and commercial papers offer ever floated in the Kenyan market.
It was arranged by Absa Bank Kenya Plc and Absa Securities Limited.
EABL said applicants in the offer, which was open for 15 days beginning October 6, 2021, will be allotted notes of a minimum KSh 100,000 and the balance on a pro-rata basis in multiples of KSh 10,000.
The five-year, fixed-rate instrument is offered at an interest rate of 12.25% payable semi-annually.
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.
Commenting on the development, NSE Chief Executive Geoffrey Odundo said the overall size of the debt capital markets in sub-Saharan Africa across sovereign and corporate bonds stands at about USD 300 billion while in Kenya the value of listed bonds is USD 26.6 billion. “While the corporate bond market is nascent, the sovereign debt market has been on a growth trajectory accounting for about 75% of the total outstanding amount. The performance of the EABL’s MTN is instrumental in the revival of our corporate bond market,” he said. Source: Tuko.co.ke
