Africa Digest News

I&M Bank Ltd has announced the opening of subscriptions for the first tranche of its KSh 20 billion Medium-Term Note (MTN) programme.

The bank is offering fixed-rate notes at a coupon of 12.20% per annum with a 5.5-year tenor.

The initial offer size is up to KSh 10 billion, with a greenshoe option of up to an additional KSh 3 billion.

The notes will be listed on the Fixed Income Securities Market Segment of the Nairobi Securities Exchange.

Key Offer Details

• Coupon Rate: 12.20% per annum (fixed)
• Tenor: 5.5 years
• Minimum Subscription: KSh 500,000
• Offer Period Closes: 15 May 2026
• Expected Listing Date: 21 May 2026

Proceeds from the issuance will be used to support onwards lending activities, fund the bank’s long-term growth initiatives, and strengthen its Tier II capital base.

Strategic Significance

This issuance represents I&M Bank’s continued effort to diversify its funding sources beyond traditional deposits and to support sustainable balance sheet growth in a dynamic operating environment.

By tapping the domestic capital market through a Medium-Term Note programme, the bank is able to secure longer-term funding at a competitive rate while enhancing its capital structure.

READ ALSO:What Safaricom’s KES 40B MTN Programme Means for Investors and Kenya’s Capital Market

The strong coupon of 12.20% is expected to attract significant investor interest, particularly from institutional investors seeking predictable, fixed-income returns in the current market.

Future Outlook

I&M Bank’s opening of subscriptions for the first tranche of its KSh 20 billion Medium-Term Note Programme offers investors an opportunity to earn a 12.20% fixed coupon over 5.5 years.

The proceeds will support lending activities, long-term growth, and Tier II capital strengthening.

As of April 2026, this issuance reflects I&M Bank’s proactive approach to diversifying its funding base and reinforcing its position in Kenya’s competitive banking sector.

For subscription details, prospectus, or participation guidelines, investors should contact I&M Bank or authorised brokers, or visit the Nairobi Securities Exchange website.

Medium-term notes Overview

Medium-term notes issued by banks
Banks raise funding through Medium-Term Note (MTN) programmes, allowing them to issue bonds in tranches over time (typically 3–10 years) instead of a single issuance.

Safaricom Medium-Term Note / Safaricom corporate bonds
Safaricom has issued corporate bonds under an MTN programme (e.g., KSh 40B programme) to finance network expansion and infrastructure.

Medium-term note programme
A flexible framework where a company pre-approves a total borrowing limit and issues bonds in phases depending on market conditions.

Medium-term notes trading platform
In Kenya, MTNs and corporate bonds trade on the Nairobi Securities Exchange Fixed Income Market Segment (FIMS).

How to buy corporate bonds in Kenya

• Open a CDS account via a stockbroker
• Fund your account
• Buy through a licensed broker on the NSE bond market
• Hold to maturity or trade on the secondary market

Corporate bonds Kenya
Issued by banks, telecoms, and corporates such as Safaricom, East African Breweries, and financial institutions.

Corporate bond vs Treasury bond

• Corporate bonds: issued by companies, higher risk, higher returns
• Treasury bonds: issued by government, lower risk, lower returns

What companies issue corporate bonds
Banks, telecoms, infrastructure firms, manufacturing companies, and large corporates.

Corporate bonds to buy
Investors typically consider:

• Credit rating (investment grade preferred)
• Yield vs risk
• Issuer strength and sector

Corporate bonds advantages and disadvantages
Advantages:

• Higher returns than government bonds
• Regular interest income
• Diversification

Disadvantages:

• Credit/default risk
• Lower liquidity vs equities
• Interest rate risk (prices fall when rates rise)