East African Breweries PLC (EABL) has announced plans to redeem its Ksh 11 billion Medium Term Notes ahead of schedule, marking one of the boldest financial moves by a listed company this year.
The brewer confirmed the early redemption through a notice shared on the Nairobi Securities Exchange’s official X account on October 13, 2025.
According to the company, the redemption will take effect on October 29, 2025.
“EABL hereby gives notice to all the holders of the outstanding Ksh 11 billion Medium Term Notes [the Notes] issued pursuant to its MTN Programme of the intention to exercise EABL’s right of early redemption in respect of the outstanding Notes in accordance with Condition 6(b) [Early Redemption] of the Terms and Conditions of the Notes, as contained in the Information Memorandum dated 5 October 2021,” EABL announced.
The move means investors will receive the full principal amount in addition to accrued and unpaid interest as of the redemption date.
“The early redemption will be effected on 29 October 2025 [the Early Redemption Date]. The notes will be redeemed at an amount equal to the principal, in addition to the accrued and unpaid interest thereon up to and including the Early Redemption Date [the Early Redemption Amount],” EABL added.
Payments will be made to noteholders registered with the Central Depositories and Settlement Corporation as of October 14, 2025, which has been designated as the Record Date.
After the redemption, the notes will be delisted from the Fixed Income Securities Market Segment of the NSE, officially bringing the 2021 Medium Term Note Programme to an end.
The announcement, signed by Company Secretary Angela Pearl Namwira, confirmed that the decision had been approved by the Capital Markets Authority (CMA).
“As a matter of policy, the Capital Markets Authority assumes no responsibility for the correctness of the statements appearing in this announcement.”
EABL’s decision to call back the Ksh 11 billion notes early is being viewed as a strategic financial move aimed at strengthening its balance sheet in a period of rising interest rates and tighter liquidity across markets.
The move also comes at a time when EABL’s majority shareholder, Diageo, is reportedly reviewing its stake in the company, fueling speculation about possible restructuring or divestment.
Clearing off major debt obligations could make the company more attractive to investors or strategic partners.
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