EABL seeks to raise Sh11 billion in new corporate bond programme
Business
By
Brian Ngugi
| Oct 28, 2025
EABL Chief Financial Officer Risper Ohaga says the decision to return to the debt market was a strategic one, driven by a significant shift in the interest rate environment. [File, Standard]
East African Breweries PLC (EABL) is seeking to raise Sh11 billion through a medium-term note, which is a type of corporate bond. This is the first phase of its new Sh20 billion bond programme which has been approved by the Capital Markets Authority (CMA).
The 15-day offer, arranged by Absa Securities Limited and Absa Bank Kenya PLC, opened on Monday and will close on November 10. Once completed, the bond will be listed on the Nairobi Securities Exchange (NSE) under the Main Fixed Income Securities Market.
This new fundraising comes soon after EABL fully repaid another Sh11 billion bond that it had issued in October 2021.
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In an interview, Group Chief Financial Officer Risper Ohaga stated that the decision to return to the debt market was a strategic one, driven by a significant shift in the interest rate environment.
“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,” Ohaga said in a statement.
She expressed confidence in the market’s capacity to absorb the issuance, noting a strong track record for corporate debt offerings in Kenya.
“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,” Ohaga added.
The company has historically been a successful issuer. Its previous Sh11-billion medium-term note in October 2021 was heavily oversubscribed, attracting applications worth Sh37.9 billion, more than three times its target.
According to Ohaga, the proceeds from the new note will be allocated to a range of corporate purposes, including funding new capital investments, repaying existing debts, refinancing short-term borrowings, and bolstering working capital.
This aligns with EABL’s strategy of using long-term, sustainable financing to support its growth initiatives.
Commenting on the deal, the Absa Bank Kenya’s Managing Executive for Corporate and Investment Banking, James Agin, highlighted the bank’s role in facilitating the programme. “At Absa, we are proud to serve as the lead arranger, placing agent and sponsoring agent for EABL’s Sh20 billion medium-term note programme,” Agin said.
“This partnership is a strong testament to our commitment to helping our clients access sustainable, long-term financing through innovative capital markets solutions.”
The successful uptake of this initial Sh11-billion tranche will guide the timing and rollout of the remaining Sh9 billion under the Sh20 billion medium-term note programme.