I&M Bank raises Sh13billion after massive oversubscription of bond issue

I&M Bank has closed the first tranche of its Kenya shilling-denominated Medium-Term Note (MTN) Programme after receiving applications worth Sh23.23 billion, more than double the Sh10 billion target.

The offer was oversubscribed at 232.26 per cent, prompting the bank to activate a Sh3 billion green-shoe option, increasing the total amount raised in Tranche 1 to Sh13 billion.

The fixed-rate note, with a tenor of five years and six months, forms part of the lender’s broader funding strategy to support lending activities, strengthen its Tier II capital position and finance business expansion.

The strong demand reflects growing investor appetite for corporate bonds in Kenya’s capital markets, which have recently seen increased participation amid efforts by firms to diversify funding sources beyond traditional bank loans.

In a statement, I&M Group Regional Chief Executive Officer Kihara Maina said the high uptake reflected confidence in the bank’s financial position and strategy, including its “iMara 3.0” growth plan.

He said the issuance also pointed to increased market confidence in corporate debt instruments as an asset class within the country’s financial system.

Successful investors will receive allotment notifications via email, with the notes expected to be credited to Central Depository and Settlement Corporation (CDSC) accounts on or around May 19, 2026.

The notes are expected to be listed on the Nairobi Securities Exchange (NSE) Main Fixed Income Securities Market Segment on May 21, 2026, subject to regulatory approvals and completion of post-allotment processes.