EABL stirs market with Sh11 billion bond offer
Just a couple of months after retiring its Kes6 billion bond, brewer EABL is back in the capital market seeking to raise Kes11 billion.
The regional company’s new five-year medium term notes whose subscription opens today to investors at the Nairobi Securities Exchange (NSE) will close on October 21.
The new issuance, which has the approval of the Capital Markets Authority, has a tenure of five years and offers a fixed return of 12.25 per cent per annum payable every six months.
The company said the proceeds from the new bond issue will go towards boosting the firm’s working capital as well as the refinancing of specific short-term borrowings.
In early June, EABL opted for early repayment of Kes6 billion bond sending the NSE fixed income segment to a multiyear low of Kes11.1 billion.
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This year, Kes3 billion Centum bond started trading, lifting fortunes of the debt market after the listing of Kes2 billion Acorn green bond in 2019.
The bonds market has been fairly dormant with issues such as the Kes4.8 billion Chase Bank note that was suspended when the lender went under as well as the Kes1.3 billion Real People bond that remains suspended since the crisis-hit firm breached payment terms when the bonds fell due.
