The East African Breweries received 37.9 billion shillings from its medium-term note. The note oversubscribed by 245 percent
The East African Breweries received 37.9 billion shillings from its medium-term note. The note oversubscribed by 245 percent with showing the confidence of investors in corporate bonds that have been growing according to CMA.
EABL had targeted to raise 11 billion shillings in debt in an offer that was open for 15 days beginning October 6, 2021, to finance investments in expanding production, repay debts taken in the ordinary course of business, refinance short-term borrowings and provide working capital.
“The fact that this achievement was delivered in the face of depressed economic conditions further signifies the belief investors have in our strategy as this business turns 100 next year,” said EABL Group CEO Jane Karuku.
The medium-term note program will offer investors an interest rate of 12.25 percent per annum payable semi-annually and will be listed on the Nairobi Securities Exchange on 1 November 2021.
According to the Capital Markets Authority, it has enhanced growing issuer and investor confidence in the corporate bond market.
In a statement, Capital Markets Authority (CMA) said that there is an “enhanced issuer and investor confidence in the corporate bond market.” The authority said that it has approved various listing issuing corporate bonds and all of them have been oversubscribed.