East African Breweries PLC (EABL) has issued a new KSh11 billion Medium-Term Note (MTN) under its KSh20 billion Medium-Term Note Programme, marking another major milestone in the brewer’s ongoing capital market engagements.
The corporate bond, approved by the Capital Markets Authority (CMA), is set to begin trading on the Main Fixed Income Securities Market Segment of the Nairobi Securities Exchange (NSE) after its subscription period closes on 10 November 2025.
Investors have a 15-day window, beginning Monday, 27 October 2025, to subscribe to the offer. Absa Securities Limited and Absa Bank Kenya PLC are the appointed Arrangers for the issuance.
Strategic Timing and Market Confidence
The new KSh11 billion note comes shortly after the early redemption of EABL’s previous KSh11 billion bond issued in October 2021.
EABL’s Group Chief Financial Officer, Risper Ohaga, said the decision to redeem the earlier note and issue a new one was informed by prevailing market conditions, particularly the recent decline in interest rates.
“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,” Ms. Ohaga said.
“EABL believes that the market has the depth and sophistication to support significant corporate issuances, which has been proven time and again whenever we have gone to the capital markets.”
Use of Proceeds and Strategic Objectives
According to the brewer, the proceeds from the new bond will be used to finance ongoing investments, repay existing debt, refinance short-term borrowings, and provide additional working capital to support business operations.
EABL’s consistent use of the capital markets underscores its financial discipline and long-term growth strategy, aimed at maintaining liquidity flexibility while funding expansion and innovation across its regional markets.
Absa’s Role as Lead Arranger
Absa Bank Kenya’s Managing Executive for Corporate and Investment Banking, James Agin, noted that the bank was pleased to continue its partnership with EABL in facilitating access to sustainable financing.
“At Absa Bank Kenya, we are proud to serve as the Lead Arranger, Placing Agent, and Sponsoring Agent for EABL’s KSh20 billion Medium-Term Note Programme,” said Mr. Agin.
“This partnership is a strong testament to our commitment to helping clients access sustainable, long-term financing through innovative capital markets solutions.”
Strong Investor Demand Expected
EABL’s last Medium-Term Note, issued in October 2021, was heavily oversubscribed, attracting KSh37.9 billion in applications against a target of KSh11 billion — signaling strong investor confidence in the brewer’s fundamentals and Kenya’s corporate bond market.
Analysts anticipate similar enthusiasm for the new issuance, given the company’s solid credit profile, robust earnings performance, and Kenya’s improving interest rate environment.
The issuance also adds depth to the Nairobi Securities Exchange’s fixed-income segment, encouraging broader participation from institutional investors seeking well-rated corporate paper.
EABL’s Broader Market Role
As one of Kenya’s most active corporate issuers, EABL has continued to set benchmarks for private-sector participation in capital markets, aligning with the government’s agenda to promote alternative financing mechanisms beyond traditional bank lending.
The new MTN issuance reinforces EABL’s reputation as a leading corporate borrower, while supporting the development of Kenya’s domestic debt market.
