East African Breweries PLC (EABL) has today announced the issuance of a Ksh. 11 billion corporate bond under the Domestic Medium Term Note (MTN) Programme. The bond will bear interest at a fixed annual rate of at least 12.25% which will be payable semi-annually.
The bond by EABL will be for a period of 5 years and the first tranche is available from today 6th October 2021 and will close on 21st October 2021. The minimum bond amount that is available for purchase is Ksh. 100,000 and thereafter in multiples of Ksh. 10,000. The bond has been approved by the Capital Markets Authority (CMA) and will be listed on the Nairobi Securities Exchange (NSE) on 1st November 2021.
According to EABL, proceeds from the bond will be used to repay loans, to provide working capital for the business across East Africa and to refinance short term loans.
In February 2021, EABL announced the early repayment of its Ksh. 6 billion corporate bond which was floated in 2017 and was set to mature in 2022.
The company also recently changed its name from East African Breweries Limited to East African Breweries PLC . The name change took effect from 1st October 2021.
EABL is a Kenyan manufacturer of beer, spirits, and non-alcoholic beverages. The group’s headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, Tanzania and South Sudan. The company has distribution partners in Burundi, Democratic Republic of Congo and Rwanda. It’s products include Tusker Lager, WhiteCap Lager, Guinness Foreign Extra Stout, Senator Lager, Serengeti Lager, Johnny Walker, Tusker Malt Lager, Uganda Waragi, Pilsner Lager among others.