EARNINGS

EABL to pay Sh673m interest to bondholders

Bondholders on record as of April 13 to be paid starting Thursday.

In Summary

•Payment to bond investors first coupon of recently-finalised Sh11 billion issue.

•Bondholders on record as of April 13 to be paid starting Thursday.

Production at the East African Breweries Limited plant in Nairobi/FILE
PAYMENT: Production at the East African Breweries Limited plant in Nairobi/FILE

East African Breweries plc (EABL) on Thursday began interest payment of Sh673.8 million to bondholders of its Sh11 billion medium-term corporate bond.

EABL said only bondholders on record as of April 13, will receive payments in accordance with the bond's terms and conditions.

The five-year, fixed-rate instrument was offered at an interest rate of 12.25 per cent payable semi-annually.

It was issued in October 2021 and saw investors bid Sh37.9 billion in the issuing round, representing an over subscription of 275 per cent and signalling renewed investor confidence in a previously troubled local bond market.

EABL group managing director and CEO, Jane Karuku said the bond proceeds have been instrumental in supporting the company's expansion strategy and overall performance.

"As we celebrate 100 years since this company was founded, we thank the investor community for continued trust and support to our business,” she said.

The EABL medium-term note was ranked among the top corporate deals transacted in Africa in 2021 by the Bond and Loans Awards.

The award recognises the most innovative and ground-breaking deals from sovereign, corporate and financial institution issuers and borrowers. It named the EABL bond the Local Currency Corporate Bond Deal of the Year.

The bond was issued in October last year and saw investors bid Sh37.9 billion ($333 million) in the issuing round, representing an over subscription of 275 per cent, a record for EABL.

EABL offered the five-year, fixed-rate instrument at an interest rate of 12.25 per cent, payable semi-annually.

The offer was opened on October 6 and closed on October 21, and was listed for trading on the Nairobi Securities Exchange from November 1.

The company said the over subscription signified​ the trust stakeholders have in the EABL brand, celebrating 100 years of the Kenya Breweries Limited brand.

“When we issued this bond, we had confidence in the operating environment as we had studied the economy during this pandemic era.”EABL Group CFO Risper Genga-Ohaga said after the award ceremony.