EABL to raise US$85.14M corporate bond as it redeems 2021 note early 

KENYA – East African Breweries Limited (EABL) has unveiled plans to raise Kes 11 billion (US$85.14M) through a corporate bond after receiving approval from the Capital Markets Authority (CMA).  

The new Medium-Term Note (MTN) will be listed on the Main Fixed Income Securities Market of the Nairobi Securities Exchange (NSE) and is aimed at supporting strategic investments, refinancing short-term borrowings, paying down debt, and boosting working capital. 

According to regulatory disclosures, EABL’s total borrowings stood at Kes 34.8 billion (US$269.35M) by June 2025, down from Kes 41.4 billion (US$320.43M) the previous year, reflecting ongoing efforts to strengthen its financial position.  

Group Chief Financial Officer Risper Ohaga noted that the decision to issue a fresh bond and redeem an earlier one ahead of schedule was prompted by favourable market dynamics. She highlighted the decline in interest rates since EABL’s last issuance in 2021 as a key consideration. 

“Interest rates have reduced significantly since we issued the last medium-term note in 2021, and we believe this is an opportune moment to return to the market,” Ohaga said. 

She added that the Kenyan capital market has demonstrated the capacity to support major corporate fundraising efforts. 

The subscription window for the offer will run for 15 days from Monday, October 27, 2025. Absa Securities Limited and Absa Bank Kenya PLC will act as arrangers for the issuance.  

Commenting on the partnership, James Agin, Managing Executive for Corporate and Investment Banking at Absa Kenya, said the bank remains committed to enabling long-term financing solutions for corporates in the region. 

EABL’s last Medium-Term Note, floated in October 2021, attracted Kes 37.9 billion (US$293.34M) in bids against a target of Kes 11 billion (US$, indicating strong investor appetite.  

The company has now exercised its early redemption option on the outstanding Kes 11 billion under the 2021 programme, with repayment scheduled for October 29, 2025. 

Bondholders recorded in the Central Depositories and Settlement Corporation (CDSC) register as of October 14, 2025 will receive full principal and accrued interest. 

Following the payout, the notes will be delisted from the NSE’s fixed-income segment, formally closing the 2021 MTN programme. 

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