East African Breweries Plc’s (EABL) Medium-Term Note has been ranked among the top corporate deals transacted in Africa in the last year.
The Ksh11 billion Medium Term Note was named the Local Currency Corporate Bond Deal of the Year by the Bonds and Loans Awards, which recognise the most innovative and ground-breaking deals from sovereign, corporate and financial institution issuers and borrowers.
“When we issued this bond, we had confidence in the operating environment as we had studied the economy during this pandemic era. It was the right time to proceed as the market was ready to continue investing in different businesses to improve our economies, in a safe and sure way,” said EABL Group CFO Risper Genga-Ohaga.
The bond which was issued in October, saw investors bid a total of Ksh37.9 billion in the issuing round, representing an oversubscription of 275 percent, a record for EABL.
“This oversubscription signified the trust stakeholders have in the EABL brand, which will be celebrating 100 years of the Kenya Breweries Limited brand,” said EABL.
Bonds and Loans have an exhaustive selection process which involves close examination of deal size, tenure, structure, and distribution; analysis and background of the borrower and their accessibility to financing; with extra credit for those deals demonstrating high-quality execution, accessing new pools of liquidity, innovative structuring, and opening-up new markets.
The five-year, fixed-rate instrument was offered at an interest rate of 12.25 percent payable semi-annually. The offer was opened on October 6 and closed on October 21, 2021 and was listed for trading on the Nairobi Securities Exchange from November 1, 2021.
The Bonds and Loans Africa Awards are held every year but the 2021 edition was postponed due to the disruptions caused by COVID-19. The Bonds and Loans Africa Awards ceremony in 2022 will feature winners from both years – winners selected on the performance in 2020 and 2021.
Read: EABL Nets Ksh55 Billion In Revenue, Records Ksh8.7 Billion In Profits
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