I&M Bank Kenya has disclosed plans to use part of its proceeds from its corporate bond to settle its dollar denominated debt.
The lender has earmarked KES 6.5 billion to fully settle a USD 50 million debt dating back to 2021, when the International Finance Corporation (IFC) provided a seven-year subordinated loan of up to USD 50 million to I&M Bank Kenya, qualifying as a Tier II capital under Kenyan regulations.
I&M Bank launched a KES 20 billion Domestic Medium-Term Note (MTN) targeting to raise KES 10 billion in the first tranche, with a green shoe option of KES 3 billion. The issuance, which carries a tenor of 5.5 years, and an interest rate of 12.20% payable semi-annually, opened on April 30, 2026 is set to close on May 15, 2026.
I&M Bank to Mitigate Currency Risk
The bank’s plan to clear the dollar debt aims to reduce exposure to foreign currency risks amid ongoing tensions in the Middle East, which have piled pressure on Kenya’s macroeconomic environment.
Kenya’s inflation stood at 5.6% in April 2026, up from 4.4% in the previous month, attributable to the spillover effects of the war, which has kept global oil prices high, resulting to increased fuel costs and high food prices due to higher transport costs.
Data from the Central Bank of Kenya (CBK) shows that the Kenya Shilling remained stable against the U.S. dollar last week, exchanging at KES 129.19 on April 30,2026, compared to KES 129.21 in the week ended April 23, 2026.
Meanwhile, CBK foreign exchange reserves fell to USD 13.2 billion from 14.02 billion at the end of March 2026, representing 5.6 months of import cover.
