A conveyer belt in one of EABL's plants. The company has reported a half year net profit of Ksh6.6 billion

East African Breweries Limited (EABL) has listed its Medium Term Note on the Nairobi Securities Exchange (NSE).

The Medium Term Note listed on the Fixed Income Securities Investment Segment recorded a 141% subscription, netting Ksh8.4 billion against the Ksh6 billion on offer.

Speaking at the bell ringing ceremony at the NSE trading floor on Monday, EABL chairman Charles Muchene said the brewer’s capital raising programme that began in 2015 targeted to raise Ksh11 billion in two tranches.

“The programme has generated a total of Ksh17.4 billion, with the initial tranche delivering a 180 subscription against a target of Ksh5 billion,” said Muchene.

He said the funds raised will be channeled towards optimizing operations and restructuring the brewers’ balance sheet.

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EABL’s Group Managing Director Andrew Cowan noted the issuance of the note has been a success despite constrained liquidity in the money market.

Mr Cowan also mentioned the raised capital will strengthen EABL business position and competitiveness which will enable effect operations through strategic investment in people, brands and innovation across different markets they operate in.

Nairobi Securities Exchange Chief Executive Officer Geoffrey Odundo said this is the first corporate bond to be listed in the market this year and it will open doors for more listing in the course of the year.

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Mr Odundo said EABL subscription rate success is a clear demonstration of deepening relationship and confidence in the market that is well regulated to suit their needs. “The ability of issuers such as EABL continue to come into the market and raises greater amounts of capital increasing investor appetite in markets for debt securities,” Odundo added.

The listing of the note will have an interest at fixed annual rate of 14.17% until it matures in March 2022.

[crp]

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