I&M Bank Limited has announced the closure of the first tranche of its KES 20 billion Medium-Term Note (MTN) programme, receiving an overwhelming response from investors that resulted in a 232.26% subscription rate. The bank received total bids amounting to KES 23,225,850,000, far exceeding the initial offer.
The financial terms of this issuance include a coupon rate of 12.20% per annum, with interest payments scheduled semi-annually every May and November. They have a tenor of five years and six months and were issued at par. The notes are set to reach their full maturity on November 18, 2031.
Following the allotment of the notes, they are scheduled to be listed on the Nairobi Securities Exchange (NSE) on May 21, 2026. They will be traded under the Main Fixed Income Securities Market Segment (FISM), which will allow investors the opportunity for secondary trading following the initial issuance
I&M Strategic Use of Capital
The proceeds from this KES 13 billion bond are earmarked to bolster the bank’s Tier II capital requirements and support its aggressive expansion and lending growth. The group CEO Kihara Maina noted that, the issuance reflected confidence in the Bank’s long-term strategy and will enhance funding resilience as the lender targets increased credit growth for businesses and individuals.
The bank’s strong financial performance including a 29% jump in profit before tax for the year ended December 2025 and its Fitch rating of A+ were cited as key drivers of investor confidence.
This issuance comes at a strategic time, with I&M Bank positioned to benefit from a low-interest-rate environment following cumulative cuts to the Central Bank of Kenya policy rate. The success of this tranche may set a positive tone for future corporate debt issuances in Kenya, as firms seek stable, long-term alternatives to traditional bank loans. With Tranche 1 now closed, the bank has significantly strengthened its capital base, providing the necessary room to grow its loan book.
