EABL pays early its KES11 Billion corporate bond

By Jackson OKOTH

East African Breweries Limited (EABL) has announced the early redemption of its 5-year KSh 11Billion Medium Term Notes(MTN) issued in 2021, the largest in Kenya’s corporate history, ahead of the debt’s maturity date of 29th October 2026.

The regional alcohol brewer, majority owned by UK’s Diageo Plc, said payment to holders of this debt instrument will be on October 29, 2025, for those on the firm’s register roll by Tuesday, October 14, 2025.

During this offer sale, EABL received bids amounting to KSh 37.9 billion against a target of KSh 11 billion, a 345% oversubscription.

EABL had planned to use proceeds from this programme, to repay some of its borrowings, provide working capital for the Group across East Africa and to refinance some of its short-term borrowings.

The brewer first floated KSh 5 billion, 5-year fixed rate notes in the debt capital markets in 2015. Two years later, EABL was back to the market with a second tranche of KSh 6 billion, 5-year fixed rate notes, in 2017. Then in 2021, EABL issued KSh 11 billion medium-term note; the largest public issue in Kenya’s history

Holders of the EABL Medium Term Notes, listed at the Nairobi Securities Exchange(NSE). have been receiving interest payments at the fixed rate of 12.25% per annum, payable every six months.

Data from the EABL end year financial results for 2025 shows that its total borrowings, including bank loans and the medium term note, fell to KSh 29,750,880 in 2025 from KSh 37,707,682 in 2024.

EABL has been battling effect of a weak Kenya Shilling against the US dollar which has since appreciated against major currencies, reversing the depreciation experienced in the prior year.

In Tanzania, the brewer continues to navigate external pressures, including proliferation of illicit alcohol, sustained input cost inflation and declining consumer spending driven by reduced disposable income.

In the financial year ended 30^th June 2025, the firm recorded Net revenue of KSh 128.8 billion while volume grew 2% as both beer and spirits registered growth across markets.

Net Profit grew 12% to KSh 12.2 billion, driven by topline growth, foreign exchange gains and lower finance costs realized through reduction of both debt and interest rates.

 Total debt (including overdraft) reduced by KSh 8.3 billion contributing to lower finance costs.

The Board of Directors recommend a final dividend of KSh 5.50 per share, for payment on 28th October 2025 to shareholders who are duly registered at the close of business on 16th September