East African Breweries Plc (EABL) plans to raise up to eleven billion (about Ksh 11,000,000,000) through Domestic medium-term notes (MTNs) to meet its funding requirements.
This is the first offering with an unsecured 5-year tenor with a fixed rate at 12.25 per cent per annum payable semi-annually in arrears the Group said in a statement.
“The proceeds of the issue of the Notes ( after paying all expenses of the issue) will be used by EABL to repay certain borrowings taken in the ordinary course of business, to provide working capital for the Group across East Africa and to refinance certain short-term borrowings, “the Group said.
It added that it does not anticipate an increase in its debt levels as a result of the issuance.
The notes will be listed on the Nairobi Securities Exchange.
The offer opened Wednesday and will close on 21 October 2021. Absa Bank Kenya and Absa Securities Limited are the book-runners of the issue.
The listed beer maker has returned to the market after paying its eighth Tranche two of KSh 6 billion fixed-rate notes at a fixed rate of 14.17 per cent per annum in March. EABL in 2017 said the issuance of the second and final tranche of its Domestic Medium Term Note Programme was to raise KSh6 billion.