East African Breweries PLC (EABL) is returning to the capital markets to raise KSh 11 billion through a new corporate bond, the first tranche of a larger KSh 20 billion Medium-Term Note (MTN) programme approved by the Capital Markets Authority (CMA). The five-year, unsecured notes will be listed on the Nairobi Securities Exchange (NSE) and offer investors a fixed annual interest rate of 11.80%.

The offer opened on Monday, 27 October 2025, and is scheduled to close on Monday, 10 November 2025, according to official announcements. This move is a core part of EABL's strategy to enhance its financial flexibility, refinance existing debt at more favourable rates, and fund general corporate operations. The minimum investment is set at KSh 10,000, a threshold designed to attract both retail and institutional investors.

The capital raise is strategically timed, following EABL's announcement on 13 October 2025, of its plan to redeem an existing KSh 11 billion bond ahead of schedule. That bond, issued in October 2021, carried a higher coupon rate of 12.25% and was set to mature in October 2026. By redeeming the older, more expensive debt and issuing a new note at a lower interest rate, EABL is poised to significantly reduce its annual finance costs, which stood at approximately KSh 1.34 billion for the 2021 bond.

EABL's Group Chief Financial Officer, Risper Ohaga, stated that the decision was driven by improved market conditions. "Interest rates have reduced significantly since we issued the last medium-term note in 2021, and we believe this is an opportune moment to return to the market," Ms. Ohaga said on 27 October 2025. This sentiment reflects a broader trend of moderating interest rates in Kenya's economy through 2025, a shift from the high-rate environment of 2024.

Financial Health and Market Context

EABL's latest financial disclosures for the year ended 30 June 2025, paint a picture of a company in solid standing. The brewer reported a 12% growth in profit after tax to KSh 12.2 billion, with revenues climbing 4% to KSh 128.8 billion. The company has also been actively deleveraging its balance sheet, with total borrowings declining from KSh 41.4 billion in the previous year to KSh 34.8 billion by June 2025. Refinancing the bond also helps EABL manage its liquidity ratios, as the previous note was approaching reclassification as a short-term liability, which would have impacted its current ratio—a key measure of liquidity monitored by the CMA.

The transaction is managed by a consortium of financial institutions, with Absa Bank Kenya PLC and Absa Securities Limited acting as the lead arrangers and placing agents. Other key parties include MTC Trust & Corporate Services Limited as the note trustee and PricewaterhouseCoopers LLP (PwC) as the reporting accountant.

The issuance is a significant development for Kenya’s corporate bond market, which has seen limited activity in recent years following some high-profile defaults that made investors wary. EABL's strong track record and the successful oversubscription of its 2021 bond—which attracted bids worth KSh 37.9 billion against an KSh 11 billion target—are expected to boost investor confidence. This move demonstrates that financially sound corporations can still tap the local debt market for long-term, sustainable financing.

Timeline and Logistics for Investors

The key dates for the bond offer are as follows:

• Offer Period: Monday, 27 October 2025 to Monday, 10 November 2025.
• Allotment Date: Wednesday, 12 November 2025.
• Issue and Payment Date: Tuesday, 18 November 2025.
• CDS Account Crediting: Thursday, 20 November 2025.

Once issued, the notes will be listed on the Main Fixed Income Securities Market of the NSE, allowing investors to trade them on the secondary market. Interest payments to bondholders will be made semi-annually. The proceeds will be used for general corporate purposes, including refinancing short-term borrowings and funding working capital, without increasing the company's overall debt load.