Nairobi, March 13, 2017…East African Breweries Limited announced today the issuance of the second and final tranche of its Domestic Medium Term Note (MTN) Programme, seeking to raise a total of up to KES 6 billion. The Note will bear interest at a fixed annual rate of at least 14.17% until maturity on March 28, 2022.
This is the second phase of the KES 11 billion Programme, which in 2015 raised a total of KES 5 billion, an issuance that recorded a subscription rate of 180%.
The second and final tranche which has already received approval from the Capital Markets Authority (CMA) will provide EABL an opportunity to match its borrowings with its medium-to-long term capex and working capital investment aimed at building capacity and optimizing operations. The issue is aimed at achieving an optimal capital structure.
The minimum investible amount of the bond, which will be listed on the Fixed Income Securities Investment Segment of the Nairobi Securities Exchange, is KES100,000 and integral multiples of KES 100,000.
The Placing Agents for EABL’s MTN Program are; Barclays Bank of Kenya & Barclays Financial Services Limited, and CFC Stanbic Bank & SBG Securities Limited. CFC Stanbic are also the Fiscal Agent, while Coulson Harney Advocates are the Legal Advisors in this transaction.