EAB PLC Issues Medium-Term Notes Worth 11 Billion Kenyan Shillings

The East African Breweries (EAB) Plc has secured approval from the Capital Markets Authority (CMA) to put up Medium-Term Notes worth 11 Billion Kenyan Shillings through its domestic Medium-Term Note programme.

All proceeds from the Fixed-rate Notes will be used by the East African Breweries (EAB) Plc to execute the repayment of funds borrowed by the business in a bid to provide working capital for the company across East Africa. It will also be used in the refinancing of a number of short term loans.

According to the East African Breweries (EAB) Plc the issuance of the notes will not in anyway affect its debt levels.

The Medium-Term Notes will have a tenor of five (5) years as well as a fixed interest rate of 12.25 percent per year which can be paid semi-annually in arrears. The minimum subscription stands at 100,000 Kenyan Shillings in multiples of 10,000 Kenyan Shillings.

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The Medium-Term Notes are however unsecured and will be ranked side by side with all the unsecured debt of the East African Breweries (EAB) Plc.

The offer which was opened on the 6th of October 2021, will close on the 23rd of October 2021. The allotment date, has been set for the 27th of October 2021.

For the Medium-Term Notes which will be listed on the 1st of November 2021, will have a payment date and issue date set for the 29th of October 2021.

The arrangers, placing agents and sponsoring stockbrokers are Absa Bank Kenya Plc and Absa Securities Limited. The paying agent are Image registrars Limited, the reporting accountants; PwC, Legal Counsel; Coulson Harney LLP( Bowmans Kenya), and the Note Trustee; MTC Trust and Corporate Services Limited.

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East African Breweries (EAB) Plc which was formerly known as East African Breweries Limited (EABL), officially changed its name with effect from the 1st of October 2021.

The name change has been carried out in compliance with the requirements of the Companies Act 2015. It was duly approved by the shareholders of the company during the 2021 virtual Annual General Meeting (AGM) which was held on the 14th of September 2021.

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East African Breweries (EAB) Plc will however continue to trade as East African Breweries Limited (EABL) as it is a duly registered business name and a trademark owned by the company.

The board of the East African Breweries (EAB) Plc made it known via a statement that all the contractual obligations and relationships that the East African Breweries Limited (EABL) has with its partners, customers alongside other stakeholders are will not be affected in any for, by the change of name.

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