I&M Bank has set a minimum investment threshold of Sh500,000 for its corporate bond that seeks to raise Sh20 billion to grow its loan book and boost its capital levels, signalling a preference for high-net-worth investors.
The listed lender intends to raise Sh10 billion in the first tranche of the bond, which runs for two weeks to May 15, 2026, with the option of taking an additional Sh3 billion in case of an oversubscription under what is referred to as the greenshoe option.
The minimum threshold set by I&M is high compared to those set by Safaricom, East African Breweries Limited (EABL), and Kenya Mortgage Refinance Company (KMRC) when they listed bonds in the market.
KMRC has set the minimum subscription in its green bond at Sh100,000, while the Safaricom green bond required Sh50,000. The EABL set a minimum threshold of Sh10,000 for its bond.
I&M is offering a return of 12.2 percent to investors of the bond, which will be listed on the Nairobi Securities Exchange on May 21.
I&M Bank plans to use the funds to grow its loan book and increase its total capital level with adequacy levels at 2.05 percentage points above the statutory minimum as at the end of December 2025.
“The proceeds of the issue shall be used for onward lending, long-term funding for growth and expansion, and strengthening of the bank’s tier 2 capital,” said the bank.
I&M has been expanding its focus from corporate and commercial customers into retail and small and medium-sized enterprises, spurring its expansion drive. Last year, the lender added 12 branches and 11 ATMs to its network with the capital raise.
I&M becomes the fourth company to issue a medium-term note in the last six months, continuing the recent revival of the corporate bond market.
This follows the raising of Sh20 billion by Safaricom in its debut green bond, while EABL raised Sh16.7 billion to offset debt obligations. KMRC has this week returned to the market for the second tranche of its Sh10.5 billion bond.
I&M is offering a higher return, at 12.2 percent, on its bond than the other corporates.
KMRC, whose bond sale is running to May 12, did not disclose the pricing of its bond, which is, however, set to be tax-exempt, being a green bond.
Safaricom and EABL, whose bond sales were oversubscribed, offered 10.4 percent and 11.8 percent, respectively. Safaricom’s green bond was tax-exempt.
I&M’s loan book stood at Sh217.9 billion as at the end of December 2025, following a marginal 0.7 percent growth from a year earlier.
Its total capital to total risk-weighted assets ratio, which ties the bank loan book to capital levels, was at 16.55 percent, being 2.05 percent above the statutory minimum of 14.5 percent.
I&M has a regional presence in Tanzania, Uganda, Rwanda, and Mauritius through Bank One. The bank posted a 27.6 percent net profit growth to Sh18.7 billion in the year ended December 2025 from Sh14.7 billion the year before.
