I&M Bank MTN Debuts on NSE After Ksh23.2B Investor Rush

I&M Bank has officially opened trading for its Medium-Term Note (MTN) at the Nairobi Securities Exchange (NSE), following overwhelming demand from investors during the public offer.

The bank’s first tranche of the Kenya shilling-denominated note has now been admitted to the NSE’s Main Fixed Income Securities Market Segment, allowing investors to trade the security on the secondary market for the first time.

The listing comes months after the lender recorded one of the strongest investor responses seen in the market recently. I&M Bank had initially targeted to raise Ksh 10 billion through the offer, but investor applications surged to Sh23.2 billion, more than double the intended amount.

The strong response has been linked to rising investor interest in fixed-income investments as many Kenyans look for safer and more stable returns in an economy still facing high living costs, expensive credit and unpredictable market conditions.

Corporate bonds and medium-term notes have increasingly become attractive to pension funds, insurance firms, SACCOs and wealthy individual investors because they often offer better returns compared to ordinary savings accounts while carrying lower risk than stocks.

By listing the MTN at the NSE, investors who bought into the offer are now able to sell their holdings before maturity, while new investors can also purchase the notes through the market. The minimum investment bid has been set at Ksh 50,000.

Speaking during the listing ceremony at the NSE, I&M Group Executive Director Sarit Shah said the move was not only important for the bank but also for the development of Kenya’s investment market.

“The listing of our MTN on the Nairobi Securities Exchange marks an important step forward for I&M Bank and for investors,” Shah said.

He explained that placing the notes in an active trading market would improve liquidity and create wider access for investors interested in fixed-income products.

The bank plans to use the funds raised to support expansion under its iMara 3.0 growth strategy, which focuses on growing business lending, strengthening SME financing and increasing its presence in the retail banking space.

I&M Bank has continued to strengthen its position in the Kenyan banking sector in recent years through regional expansion, digital banking investments and growth in customer deposits. The lender has also maintained steady profitability despite pressure facing the financial sector from rising loan defaults and tight economic conditions.

The NSE described the listing as another positive sign for Kenya’s capital markets, especially at a time when the corporate bond market is showing signs of recovery after years of limited activity.

Nairobi Securities Exchange Chief Executive Officer Frank Mwiti said the successful transaction reflects growing confidence among both issuers and investors.

“The listing of I&M Bank’s MTN is a further demonstration of the growing confidence in Kenya’s capital markets and the expanding role of corporate notes in mobilising long-term capital,” Mwiti said.

He noted that the market has recently seen successful issuances from major companies, including Safaricom, East African Breweries Limited, and Kenya Mortgage Refinancing Company, a trend analysts say could encourage more firms to raise money through debt markets instead of relying heavily on bank borrowing.

Experts believe the return of active corporate bond issuances could help deepen Kenya’s financial markets by increasing investment choices for the public while also giving businesses access to long-term funding needed for growth and expansion.

For investors, the I&M MTN listing presents another opportunity to participate in Kenya’s growing fixed-income market at a time when demand for reliable investment products continues to rise.