East African Breweries PLC (EABL), plans to redeem its KES 11 billion Medium-Term Note earlier in exercise of its right of early redemption after approval by the Capital Markets Authority (CMA).
The Diageo Group subsidiary issued the note in October 2021 under its KES 45 billion Domestic Medium-Term Note program, internally dubbed “Project Kifaru”, to refinance existing short-term debt, fund business expansion, and strengthen working capital. The bond was offered KES 11 billion at a fixed rate with a coupon of 12.25% per annum payable semi-annually and a tenor of five years.
The offer was oversubscribed at 345% attracting KES 37.9 billion in bids against the KES 11 billion target. The bond was listed on the Nairobi Securities Exchange (NSE) under the Fixed Income Securities Market Segment (FISMS), featuring as one of the largest and most successful corporate bond issuances in Kenya.
EABL’s MTN Redemption
EABL is set to effect the redemption on October 29, 2025. The early redemption means that EABL is settling the bond one year before its maturity, reflecting the company’s strong liquidity. According to a notice issued by the firm, the notes will be redeemed at an amount equal to the principal amount and any accrued but unpaid interest since the last time EABL paid interest, right up to the early redemption date. In April 2025, EABL made its seventh semi-annual interest payment to Noteholders under Program.
“On the Early Redemption Date, the Early Redemption Amount will be disbursed to the persons registered as holders of the Notes in the register maintained by the Central Depositories and Settlement Corporation as at 14 October 2025,” read a notice by EABL.
The East African brewer’s early redemption demonstrates the firm’s efforts to cut costs through cheaper bank loans, boost liquidity, and optimize its debt position. On completion of the bond buyback, the Notes will be removed from trading on the Nairobi Securities Exchange’s FISMS, officially marking the end of EABL’s Domestic Medium Term Note program.
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