I&M Bank Limited has closed a heavily oversubscribed bond offering, with investor applications coming in at more than twice the amount the bank had initially sought — a result the lender says reflects strong market confidence in its growth trajectory.
The offer, the first tranche under I&M Bank’s Kenya Shilling-denominated Medium-Term Note (MTN) Programme, attracted applications totalling KES 23.2 billion against a target of KES 10 billion — a subscription rate of 232.26%. Given the outsized demand, the bank activated a green-shoe option worth KES 3 billion, bringing the total amount raised in Tranche 1 to KES 13 billion.
The notes are structured as a fixed-rate instrument with a tenor of five years and six months, and are intended to support the bank’s onward lending activities, bolster its Tier II capital, and fund strategic business expansion.
For I&M Group Regional CEO Kihara Maina, the result was both a personal and institutional vindication. “The strong response to this offer is a clear vote of confidence in I&M Bank’s long-term strategy, financial resilience and disciplined execution,” he said. Maina also framed the outcome as an endorsement of the bank’s iMara 3.0 strategy — its current blueprint for deepening market leadership and expanding into new growth segments.
Beyond I&M Bank itself, Maina suggested the transaction carried a broader significance for Kenya’s financial markets. “It signals growing investor confidence in corporate bonds as an important asset class and demonstrates the continued depth, resilience and maturity of Kenya’s capital markets,” he added.
Successful applicants are set to receive allotment confirmations by email, with notes expected to be credited to investors’ CDSC accounts around 19 May 2026. The notes are also expected to be listed on the Nairobi Securities Exchange’s Main Fixed Income Securities Market Segment on 21 May 2026, pending regulatory approvals.
The MTN Programme represents a step in I&M Bank’s strategy to diversify its funding base and reduce reliance on shorter-term deposits, as it looks to position itself for sustained growth across its East African operations.