EABL(East African Breweries Limited) has again re-entered the Debt Market to raise KSh 20 billion, only weeks after redeeming its 5-year KSh 11 billion Corporate Bond, which was repaid ahead of its maturity date. This 5-year Medium-Term Note (MTN) program, comes at a time when shareholders are today receiving a huge dividend cheque, at KSh 5.50 per share for those with stakes in the blue chip firm.
Investors keen to take a bite are already rushing for first tranche, offering up to KSh 11 billion worth of notes, which has already opened.
The notes have a 5-year tenor, providing the regional brewing giant, which huge stakes owned by UK Diageo, with a medium-term financing solution. The notes carry a fixed interest rate of 11.80% per annum, offering investors a stable return.
The EABL notes will be listed on the Nairobi Securities Exchange (NSE), enhancing their liquidity and tradability.
Security:
The issuance is unsecured, meaning that the notes are not backed by specific assets. However, they have equal ranking with other unsecured debt, implying that all unsecured creditors will have equal claim on the company’s assets in the event of default.
EABL plan for the proceeds:
Proceeds from the Corporate Bond will support EABL’s general corporate purposes, including potential business expansion, working capital management, and debt refinancing.
Impact on EABL’s Financials:
EABL has indicated that the proceeds from this issuance will not lead to a material rise in net leverage. This suggests that EABL is managing its debt levels prudently and is likely to maintain a stable credit profile.
According to investment analysts, the EABL cash call offers investors an opportunity to lend to a reputable firm, with a stable credit profile, at an attractive fixed interest rate. The listing on the NSE also provides liquidity options for investors.
What’s Next?
“The success of this MTN program will depend on various market factors, including interest rate trends and investor appetite. As EABL continues to tap into the debt markets, stakeholders will be keenly watching the company’s progress and its ability to meet its financial obligations,” said CFA Dedan Maina.
The counter is currently priced at KSh 230, and gained 0.79% when trading ended at the Nairobi Securities Exchange this Monday.
The listed brewer made a net profit growth of 12.2 % in the full year ended 30th June 2025, driven by strong revenue growth across its regional subsidiaries as well as lower finance costs.
Available Data from the brewer’s end year financial results for 2025 shows that its total borrowings, including bank loans and the medium term note, fell to KSh 29,750,880 in 2025 from KSh 37,707,682 in 2024.
The listed firm has been battling effect of a weak Kenya Shilling against the US dollar which has since appreciated against major currencies, reversing the depreciation experienced in the prior year.
In Tanzania, the brewer continues to navigate external pressures, including proliferation of illicit alcohol, sustained input cost inflation and declining consumer spending driven by reduced disposable income.
In the financial year ended 30th June 2025, the firm recorded Net revenue of KSh 128.8 billion while volume grew 2% as both beer and spirits registered growth across markets.
Net Profit grew 12% to KSh 12.2 billion, driven by topline growth, foreign exchange gains and lower finance costs realized through reduction of both debt and interest rates.
Total debt (including overdraft) reduced by KSh 8.3 billion contributing to lower finance costs.
The Board of Directors recommend a final dividend of KSh 5.50 per share, for payment today, 28th October 2025, to shareholders who are duly registered at the close of business on 16th September
- The total dividend payout for 2025 will amount to KSh8.00 per share compared to KSh 7.00 in 2024.
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