East African Breweries Plc has announced that it received applications for Notes amounting to KSh37.9 billion for its KShs 11 billion Medium-Term Note issue, representing an overall subscription of 345 percent in Kenya’s single largest non-infrastructure corporate bond offer.
Issue Arranged By Absa
The Medium-Term Note, which was arranged by Absa Bank Kenya Plc and Absa Securities Limited will be the biggest of the issued corporate bonds and commercial papers in the Kenyan market. The issue was open for 15 days beginning October 6th, 2021 and closed on October 21 and will be listed for trading on the Nairobi Securities Exchange from November 1.
Proceeds from the Notes will be used by EAB Plc to repay certain borrowings taken by the business, to provide working capital for the Group across East Africa and to refinance certain short term borrowings taken in the ordinary course of business.
READ; Absa Bank denies breaching lending law in Ksh 19.87 Billion loan to East African Breweries
According to Absa Bank Managing Director, Jeremy Awori, the issue was oversubscribed by a diverse pool of institutional and retail investors.
“The overwhelming success has been delivered on the backdrop of a challenging economic environment and is testament to the resilience our private sector, the growing sophistication of our capital markets, and the important role played by strong financial institutions like Absa in facilitating growth.” said Absa Bank Managing Director, Jeremy Awori.
“The fact that this achievement was delivered in the face of depressed economic conditions further signifies the belief investors have in our strategy as this business turns 100 next year,” said EABL Group CEO, Mrs. Jane Karuku adding that the oversubscription is a demonstration of investors’ confidence in the business which will celebrate its centenary next year.
EABL’s Group CFO Risper Genga Ohaga said that the application process was delivered through a digital platform, a first in Kenya. The CFO noted that the subscription rate demonstrates that the market has the depth and sophistication to support significant corporate issuances.
