I&M Bank Raises Ksh 13B From MTN Offer

I&M Bank has announced that investors submitted bids worth Ksh 23.23 billion for the first tranche of its Medium-Term Note (MTN) Programme, more than double the amount the bank had planned to raise.

In a notice dated Saturday, May 16, 2026, the bank said the offer period for the first tranche closed on May 15, 2026, after receiving an overwhelming response from investors.

“I&M Bank Limited (“The Bank”) is pleased to announce the results of the first tranche of the Medium-Term Note following the closing of the offer period on 15th May 2026,” read part of the notice.

The bank had initially offered Ksh 10 billion under the first tranche of its KSh 20 billion MTN Programme.

However, investors applied for notes worth Ksh 23,225,850,000, representing a subscription rate of 232.26%.

I&M Bank Forced to Increase Bond Size After Huge Investor Demand

Following the strong demand, the bank exercised the green-shoe option approved by the Capital Markets Authority, allowing it to increase the amount accepted from Ksh 10 billion to Ksh 13 billion.

According to the announcement, the note has a tenor of five years and six months and carries a fixed coupon rate of 12.20% per year.

The issue date for the notes is May 18, 2026, while the notes are expected to be listed on the Nairobi Securities Exchange on May 21, 2026.

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The notes will mature on November 18, 2031, and investors will receive coupon payments twice every year in May and November in line with the pricing supplement.

The bank also confirmed that the notes were issued at par and carry the ISIN number KE9930006870.

The Medium-Term Note Programme has a total value of Ksh 20 billion, with this being the first tranche under the programme.

Several firms participated in the transaction process. Standard Investment Bank acted as the lead arranger and placing agent, while I&M Burbidge Capital served as advisor to the board.

The Co-operative Bank of Kenya was the receiving bank, Walker Kontos Advocates acted as the legal advisor, and KPMG served as reporting accountants.

The note trustee for the transaction was Ropat Trust Company Limited.

I&M Bank thanked regulators, investors, and all transaction advisers for supporting the successful completion of the first tranche of the programme.

The bank also noted that the announcement had been approved by the CMA under the Capital Markets regulations.

About the MTN Programme

A Medium-Term Note (MTN) Programme is a way for a company or bank to borrow money from investors over a set period of time, usually between 2 and 10 years.

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Under an MTN programme, a company first gets approval from regulators to raise a certain amount of money, for example I&M Bank’s Ksh 20 billion programme.

The company does not have to raise all the money at once. Instead, it can raise the funds in phases called “tranches.”

Investors who buy the notes are basically lending money to the company. In return, the company agrees to pay them interest, known as a coupon, every few months until the maturity date, when the original amount invested is repaid.

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