East African Breweries PLC (EABL) has re-entered Kenya’s corporate bond market with a KSh 11 billion, five-year fixed-rate note priced at 11.80%, under its KSh 20 billion Medium-Term Note Programme approved by the Capital Markets Authority (CMA) on 2 October 2025.
“Interest rates have reduced significantly since we issued the last medium-term note in 2021, and we are of the considered view that this is an opportune moment to go back to the market,” said Risper Ohaga, EABL Group CFO.
Offer Highlights
- Issue Size: KSh 11.0 Billion
- Coupon Rate: 11.80% Fixed (Semi-annual)
- Tenor: 5 Years (2025–2030)
- Bond Code: EABL-FXD01/01/2025/05
- Status: Senior Unsecured, pari passu with other unsecured debt
- Minimum Subscription: KSh 10,000
- Interest Payment Dates: 18 May and 18 November (Actual/364 basis)
- Default Interest Rate: 2% above fixed rate
- Taxation: Subject to withholding tax unless exempt
- Call Option: Callable with 15–30 days’ notice
Key Dates
| Event | Date |
|---|---|
| Offer Opens | 27 October 2025 |
| Offer Closes | 10 November 2025 |
| Issue/Payment Date | 18 November 2025 |
| NSE Listing | 25 November 2025 |
Investors must be on the register 15 calendar days before each interest payment date to qualify. Books will be closed from 3–17 May and 3–17 November annually.
Use of Proceeds
According to the official Pricing Supplement, EABL will use the funds for:
- General corporate purposes
- Repayment of existing borrowings
- Refinancing short-term debt
- Working capital support
Institutional Support
The issuance is backed by a consortium of financial and legal advisors:
- Lead Arrangers & Placing Agents: Absa Bank Kenya PLC and Absa Securities Limited
- Legal Counsel: Bowmans Kenya
- Reporting Accountants: PwC
- Paying Agent: Image Registrars
- Trustee: MTC Trust & Corporate Services
“This partnership is a strong testament to our commitment to helping clients access sustainable, long-term financing,” said James Agin, Managing Executive for Corporate and Investment Banking at Absa Bank Kenya.
Investor Considerations
- Allotments will be pro rata for retail investors and at the issuer’s discretion for institutional buyers.
- A 50% minimum success threshold applies.
- The notes are unrated, and EABL retains the right to cancel the issue in case of a Withdrawal Event before settlement.
The new tranche follows the early redemption of EABL’s 2021 bond and reflects the brewer’s continued strategy to optimise its debt structure amid a moderating interest-rate environment.
“EABL believes the market has the depth and sophistication to support significant corporate issuances,” Ms. Ohaga added.
