Four years after raising KSh 11 billion in a record 345 percent-subscribed issue, East African Breweries PLC(EABL) will buy back the bond on 29 October 2025, a year before maturity.
- •The brewer has invoked its early redemption option under Condition 6(b) of the 2021 Medium-Term Note (MTN) Programme, which allows partial or full repayment on any coupon date with at least 15 days’ notice.
- •The redemption covers the full principal and accrued interest, after which the note will be delisted from the Nairobi Securities Exchange’s fixed-income segment, closing one of Kenya’s most successful corporate debt programmes.
- •EABL’s five-year, 12.25% fixed-rate note was issued on 29 October 2021 at par and listed on the NSE on 1 November 2021.
It drew KSh 37.96 billion in bids against a target of KSh 11 billion, translating to a 345% subscription rate—the highest ever for a Kenyan corporate bond.
The issue, arranged by Absa Bank Kenya PLC and Absa Securities Limited, carried a semi-annual coupon and a five-year tenor scheduled to mature on 29 October 2026. The proceeds were used to refinance short-term borrowings and fund working capital across the EABL Group.
At launch, the bond priced at a premium of roughly 80 basis points above comparable five-year government securities, underscoring investor confidence in EABL’s credit profile and brand strength.
Market Pricing
As of 9 October 2025, NSE data showed the EABL 12.25% note trading slightly above par at 101.14, with an implied yield to maturity of 10.85% and an outstanding nominal value of KSh 10.99 billion. The bond’s clean price reflected market expectations of full repayment ahead of maturity.
The next coupon date, 24 October 2025, will coincide with the early redemption. Payments will be made to noteholders registered with the Central Depositories and Settlement Corporation as of 14 October 2025.
Once redeemed, the issue will be delisted, formally concluding EABL’s 2021 MTN Programme, which remains a benchmark in Kenya’s corporate debt market for scale, pricing discipline, and investor participation.
