Tier I lender I&M Bank Limited has launched a KES 20 billion Domestic Medium-Term Note (MTN) Programme following approval from the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).
Under the programme, the lender has announced the first tranche of fixed rate notes, offering KES 10 billion, with a green shoe option of KES 3 billion. The tranche has a minimum subscription of KES 500,000 and multiples of KES 50,000, primarily targeting institutional and high-net-worth investors. The notes carry a tenor of 5.5 years, and an interest rate of 12.20%, payable semi-annually.
The proceeds from the issuance have been earmarked for onward lending, long-term funding, growth and expansion, and strengthening the bank’s Tier II capital. This aligns with I&M’s broader strategy of strengthening its financial position, while financing key sectors of the economy.
The offer, which opened on April 30, 2026 is set to close on May 15, 2026, with allocation and allotment to take place shortly thereafter. The notes will be listed on the Nairobi Securities Exchange (NSE) under the Fixed Income Securities Segment (FISM) on May 21, 2026.
I&M Bank has appointed Standard Investment Bank as the lead manager and placing agent, with key advisors including KPMG Kenya and Walker Kontos Advocates. Co-operative Bank will act as the receiving bank, while Ropat Trustee Company Limited is the note trustee.
I&M Bank Positioned to Benefit from Lower Interest Rates
I&M is positioned to benefit from the current low-interest rate environment, with the Central Bank of Kenya policy rate at 8.75% following a cumulative 425 basis points cut since August 2024.
Also Read: KMRC Officially Opens KES 3Bn Green Bond Tranche
