EABL (East African Breweries Limited) received bids from investors amounting to KSh 16,764,220 against a target of 11 billion. In light of the oversubscription of 152,4020%, the listed brewer used the green option to accommodate an extra KSh 6 billion.
This is the first tranche in a plan where the brewer is seeking to borrow KSh 20 billion through these medium term debt instruments.
EABL is offering successful bidders, a coupon rate of 11.80% per annum for the debt instrument that matures on November 18th 2030. This is compared to what the more secure Treasury Bonds are offering investors, for its five year debt instruments, with coupon rates of between 11% and 11.5%. Investors interested in EABL’s Bond therefore enjoy an extra premium considering that this debt instrument is unsecured. This means that EABL could run into financial problems making it difficult to make the interest payments due on time.
MTNs are debt instruments used by companies to raise funds, the fixed income securities being attractive to investors seeking predictable returns.
Successful bidders in the EABL corporate bond will receive their semi-annual interest payments on 18th May and 18 November in each year up to and including the Maturity Date.
The Notes will be uploaded on the CDSC accounts of successful bidders on 20th November 2025 and the debt instruments listed at the Nairobi Securities Exchange(NSE) on 25th November 2025.
The EABL Notes programme had Absa Bank Kenya as arrangers & placing agents, Absa Securities Limited as sponsoring stockbroker and paying agent is Image Registrars Limited. The Trustee is MTC Trust &Corporate Services Limited, Legal Counsel is Coulson Harney LLP (Bowmans, Kenya and Reporting Accountants is PricewaterhouseCoopers.
EABL Group Financial Performance 2025
According to the EABL Group’s Annual Report and Financial Statements for the year ended 30th June 2025, the listed brewer had Net borrowings of KSh 39,321,163 from KSh 47,062,984 in 2024, Lease liabilities of KSh 2,967,793 2,603,220, Bank overdrafts of KSh 1,180 901,419 bringing its Net Debts to KSh 29,544,777 from KSh 38,851,194 in 2024.
At the close of its 2025 financial year, EABL recorded 4% growth in Total Revenue to KSh 128.8 billion, KSh 11.97 Earnings per share, an increase of 16%, KSh 8.00 Dividend per share and KSh 12.2 billion Net Profit.
With a market capitalization of KSh 189,785,845,44O(US$ 1,458,163,756), the counter is currently trading at between KSh 239 and KSh 240 on a volume of 263,279 shares traded on a turnover of KSh 61.87 million in 50 deals as at 2.00pm Thursday’s trading at the Nairobi Securities Exchange(NSE).
The EABL share price dipped 0.4% during the Thursday trading session due to an inevitable price correction as some short term investors took profits.
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