I&M Bank’s corporate bond has closed at an impressive 232% subscription, raising KSh 23.23 billion against a target of KSh 10 billion, as strong investor appetite continues to define NSE debt issuances over the past six months.
The bank received bids exceeding its offer by more than KSh 10 billion, even after fully utilising its KSh 3 billion greenshoe option.
Proceeds from the issuance will support lending expansion, long-term growth initiatives, and reinforcement of Tier II capital. Part of the funds will also be used to refinance an existing US$50 million subordinated facility from the IFC maturing in March 2028, with repayments set to begin in September 2026.
The 12.20% fixed-rate notes, which mature on 18 November 2031, are scheduled to be listed on the Nairobi Securities Exchange on 21 May 2026.
For the financial year ending December 2025, I&M Bank reported a 29% rise in profit before tax, alongside customer deposits of KSh 349 billion and net loans of KSh 218 billion. The lender also holds a Fitch national long-term rating of A+.
This latest offer adds to a broader run of oversubscribed corporate bond issues on the NSE, which have collectively attracted KSh 50.79 billion in bids across four deals since November 2025.
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Previous issuances in this cycle include East African Breweries, Safaricom, and Kenya Mortgage Refinance Company, all of which recorded strong oversubscription levels, with Safaricom’s green tranche drawing the highest demand at 276%.
Market enthusiasm has largely been driven by a sharp decline in interest rates, following ten consecutive Central Bank of Kenya rate cuts totalling 425 basis points since August 2024. This has pushed deposit returns down to about 7%, making corporate bonds yielding around 12.20% highly attractive to institutional investors.
However, attention is now shifting to secondary market performance. Although trading volumes have improved significantly in 2026 compared to previous years, most investors are holding bonds to maturity, leaving questions over whether liquidity in the secondary market will match the strong primary demand.
