Kenya’s EABL says to raise 11 bln shillings via medium term note

Credit: REUTERS/THOMAS MUKOYA NAIROBI, Oct 6 (Reuters) – Kenya’s East African Breweries (EABL) said on Wednesday it planned to raise up to 11 billion shillings ($99.46 million)through a five-year medium term note.

The brewer EABL.NR, controlled by Britain’s Diageo DGE.L, said the proceeds of the note, with a 12.25% interest rate, will be used to repay existing debt. Provide working capital and refinance some short term borrowings.

"EABL does not anticipate an increase in debt levels as a result of the issuance," it said in a statement announcing the sale.

It said the note would be on sale from Wednesday until Oct. 21, and it will notify those whose offers were successful on Oct. 27.

EABL was last in the capital markets in 2017 when it sought to raise 6 billion shillings after raising another 5 billion shillings in 2015.

It posted a 2% rise in pretax profit to 10.86 billion shillings ($98.19 million) for the full year to end June, while its net revenue rose 15% to 86 billion shillings.

($1 = 110.6000 Kenyan shillings)

(Reporting by George Obulutsa, editing by Louise Heavens)

(( ; Tel: +254 20 499 1234; Reuters Messaging: )) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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