This archive report was first published on 7 October 2021.
On October 6th, 2021, East African Breweries Plc (EAB Plc) received approval from the Capital Markets Authority (CMA) to issue up to KSh 11 billion in medium-term notes under its domestic medium-term note programme.
The proceeds from the fixed-rate notes will be used to repay certain borrowings, provide working capital for the group across East Africa, and refinance certain short-term borrowings.
EAB Plc has assured that the issuance of the notes will not affect its debt levels, as the company does not anticipate an increase in debt levels as a result of this issuance.
The notes have a tenor of 5 years and a fixed interest rate of 12.25% per annum payable semi-annually in arrears. The minimum subscription is KSh 100,000 in multiples of KSh 10,000.
The notes are unsecured and will rank pari passu with all unsecured debt of EAB Plc. The offer opened on October 6th, 2021, and closes on October 23rd, 2021, with October 27th as the allotment date.
The notes are expected to be listed on November 1st, 2021, with a payment and issue date of October 29th, 2021.
The arrangers, placing agents, and sponsoring stockbroker are Absa Bank Kenya Plc and Absa Securities Limited. Image registrars Limited are the paying agent, PwC as the reporting accountants, MTC Trust and Corporate Services Limited as Note Trustee, and Coulson Harney LLP (Bowmans Kenya) as legal counsel.
It is worth noting that EAB Plc changed its name from East African Breweries Limited to East African Breweries Plc on October 1st, 2021, in compliance with the requirements of the Companies Act 2015, which was approved by shareholders during the 2021 virtual Annual General Meeting held on September 14th, 2021.
