East African Breweries (EAB) Plc has received approval from Capital Markets Authority(CMA) to offer up to KSh 11 Billion Medium-Term Notes under its domestic medium-term note programme.
Proceeds from the Fixed-rate 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.
EAB Plc says the notes will not affect its debt levels
EAB Plc does not anticipate an increase in debt levels as a result of this issuance.
The Notes have a tenor of 5 years and a fixed interest rate of 12.25% per annum payable semi-annually in arrears. The minimum subscription is KSh 100,000 in multiples of KSh 10,000.
The Notes are unsecured and will rank pari passu with all unsecured debt of EAB Plc. The offer opened on October 6th 2021 and closes on 23rd October 2021 with 27th October as the allotment date.
The Notes, to be listed on 1st November 2021 with have a payment and issue date of October 29th 2021.
The arrangers, placing agents as well as sponsoring stockbroker is Absa Bank Kenya Plc and Absa Securities Limited, Image registrars Limited are the paying agent, PwC as the reporting accountants, MTC Trust and Corporate Services Limited as Note Trustee and Coulson Harney LLP( Bowmans Kenya) as legal; counsel.
Previously known as East African Breweries Limited, the listed brewer has changed its name to East African Breweries Plc with effect from 1st October 2021.
This change has been made in compliance with the requirements of the Companies Act 2015 and was duly approved by shareholders of the company during the 2021 virtual Annual General Meeting held on 14th September 2021.
The company will continue to trade as EABL, which is a duly registered business name and trademark owned by the company.
All contractual relationships and obligations that EABL has with its customers, partners and other stakeholders are not in any way affected by this change of name, said the company’s board in a statement.
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