What EABL debt rollover signals for the investors

East African Breweries Limited (EABL) #ticker:EABL recently revised the pricing supplement for the first tranche issue of its Sh11 billion medium term note programme. Cut the jargon. Essentially, they have restructured the bond. And they have done it in a very simple manner—by way of pushing forward the principal redemption date by two years. It was a three-year note issued on March 25, 2015 with a redemption slate of March 19, 2018—raising Sh5 billion in the process.

Redemption has now been rolled over to March 19, 2020. To compensate investors, they have premiumised the coupon by 70 basis points—pricing the bond at 12.95 per cent per annum payable semi-annually. I must say I haven’t seen any member of the so called blue-chip grouping restructure a debt in such a long time.