East African Breweries Limited(EABL) has paid an interest payment of KSh673.8 Million to bondholders of its KSh 11 billion medium-term corporate bond.
EABL paid the interest on April 28th 2022, to bondholders on record as of April 13th 2022, in accordance with details contained in the EABL prospectus.
This five year, fixed-rate instrument was offered at an interest rate of 12.25%, paid every six months in a year.
The medium-term note was issued in October 2021 and saw investors bid KSh 37.9 billion, a performance rate of 275% and signalling renewed investor interest in a previously troubled local bond market.
According to Jane Karuku, EABL Group Managing Director and CEO, proceeds from the note have enabled the brewer to expand and boost its financial performance.
This is the payment of the first interest coupon of 12.25%(KSh 673.8 Million) to bondholders of the firm’s medium-term note programme.
The EABL medium-term note was ranked among the top corporate deals transacted in Africa in 2021 by the Bonds and Loans Awards. This award recognizes the most innovative and groundbreaking deals from sovereign, corporate and financial institution issuers and borrowers.
It named the EABL bond issue the Local Currency Corporate Bond of the year.
The Kenyan brewer is a regional giant in the beverage alcohol industry with a wide selection of brands across beer and spirits. Its products are concentrated in Kenya, Uganda and Tanzania, although its products are also sold in more than ten countries across Africa.
Its renowned brands include Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Chrome Vodka, Johnnie Walker, Captain Morgan and Smirnoff.