I&M Bank launches Ksh20B MTN programme to support growth
By Kenneth Mwenda, April 30, 2026I&M Bank Limited has launched a public Medium-Term Note (MTN) programme worth up to Ksh20 billion to support its long-term growth plans and strengthen its capital position.
According to a press release issued on Thursday, April 30, 2026, the bank said it will raise the funds through a public offer of listed debt securities in the Kenyan market. It set the first tranche at Ksh10 billion, with a 30 per cent greenshoe option to allow for additional uptake if demand is high.
The notes will be listed on the Main Fixed Income Securities Market Segment of the Nairobi Securities Exchange after the offer closes.
The bank said the programme forms part of its long-term funding strategy. It added that it will use the funds to support onward lending, finance expansion, and strengthen its capital base under Tier II capital requirements.
The first tranche will run for five years and six months. It will carry a fixed interest rate and pay interest twice a year. Investors will receive their principal at maturity, subject to final pricing terms. The notes will be unsecured and subordinated obligations of the bank.
The offer will open on April 30, 2026 and close on May 15, 2026. The bank expects to complete allotment and issue on May 18, 2026, with listing set for May 21, 2026.
Strong financial performance
The bank said the move comes at a time of strong financial performance. For the year ended December 31, 2025, it recorded a 29 per cent increase in profit before tax. Operating income rose by 23 per cent. Customer deposits reached Ksh349 billion, while net loans stood at Ksh218 billion.
I&M Group Regional Chief Executive Officer Kihara Maina said the issuance reflects confidence in the bank’s long-term direction and financial strength.
“This proposed note issuance reflects our confidence in the Bank’s long-term strategy, underlying business strength and disciplined approach to growth. The proceeds are intended to support lending, enhance funding resilience and strengthen our capital position in line with our strategic priorities,” he said.
He also noted the group’s strong credit standing and funding history. Maina said the bank and group hold a national long-term rating of A+ from Fitch Ratings. He added that the group has a solid track record of meeting obligations from earlier note issuances.
The bank said the MTN programme gives it flexibility to raise funds in stages rather than issuing one large bond. This allows it to match funding with market conditions and investor demand.
“We continue to strengthen our funding base while supporting long-term growth across our markets,” Maina further said.
The MTN programme will allow I&M Bank to issue multiple tranches over time under a single approved framework. This structure reduces issuance costs and improves access to long-term capital.