Regional brewer East African Breweries Plc (EABL) recorded a successful bond issuance in the first tranche of its Medium Term Note (MTN) program. EABL raised KES 16.76 billion against a target of KES 11 billion, achieving an overall subscription rate of 152.4%.
In a move to accommodate the oversubscription, the brewer exercised a green-shoe for an increase in total allotment from the Capital Markets Authority (CMA). The CMA approved the application on November 12, 2025, allowing EABL to expand the tranche within the overall KES 20 billion programme limit.
The tranche, issued on 18 November 2025, carries a coupon rate of 11.8% per annum, payable semi-annually, with a minimum subscription of KES 10,000. The notes have a five-year tenor, maturing on 18 November 2030. Coupon payments will be made on May 18 and November 18 each year up to and including the maturity date.
EABL received valid applications worth KES 16.76 billion, comprising both the base KES 11 billion target and an additional green-shoe option of KES 6 billion. All successful investors will have their allocations credited to their CDSC accounts by 20 November 2025. The notes are set to be listed on the Nairobi Securities Exchange (NSE) under the Fixed Income Securities Market Segment (FIMS) on 25 November 2025.
The oversubscription highlights increased investor appetite for corporate debt despite falling interest rates and the bullish momentum of the NSE. The Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) cut the Central Bank Rate (CBR) by 375 basis points to 9.25% in October 2025, down from 13.00% in August 2025. The low interest rate environment has opened a window for corporate borrowing, enabling EABL to tap the market through its medium-term note programme, issuing the first tranche at an 11.8% coupon. The Nairobi All Share Index (NASI) has grown by 51.5% since January 2025, with market capitalization surpassing the KES 3 trillion mark earlier in November, supported by strong corporate earnings, new listings, and increased liquidity.
EABL’s successful debt issuance reflects the recovery of corporate securities, supporting diversification and the strengthening of local debt markets.
Strategic Importance to EABL
The issuance of the notes signals management’s strategy to capitalize on lower interest rates. EABL intends to direct the proceeds from the MTN program toward refinancing of its KES 11B corporate bond issued in 2021 (coupon rate = 12.25%), with the brewer taking advantage of the low interest environment to conduct the refinancing.
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