I&M Bank Limited has closed its first tranche under a Kenya shilling-denominated Medium-Term Note (MTN) Programme after the offer attracted applications worth KES 23,225,850,000 against a planned KES 10 billion, translating to a 232.26% subscription rate, the bank said on 18 May 2026 in Nairobi.

In response to demand, the bank said it exercised a KES 3 billion green-shoe option, bringing the total allotment for Tranche 1 to KES 13,000,000,000.

The note is structured as a fixed-rate instrument with a tenor of five years and six months, and is part of the lender’s long-term funding strategy. I&M said the proceeds are intended to support onward lending, strengthen capital adequacy through Tier II capital enhancement, and fund strategic business expansion.

The transaction adds to a growing pipeline of corporate debt issuance in Kenya’s capital markets as lenders and large corporates seek longer-dated funding to match balance-sheet needs and reduce reliance on shorter-term deposits. For investors, bank-issued notes typically provide an alternative to government securities, while exposing portfolios to credit risk linked to the issuer’s performance and sector conditions.

I&M Group Regional CEO Kihara Maina attributed the result to investor support for the group’s strategy and execution. “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,” Maina said.

He added that the issuance also reflected broader market dynamics. “The success of this issuance is not only positive for I&M Bank, but also for Kenya’s capital 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,” Maina said.

According to the bank, successful applicants will receive confirmation of allotment via email, and the notes are expected to be credited to investors’ Central Depository & Settlement Corporation (CDSC) accounts on or about 19 May 2026.

The notes are expected to be listed on the Nairobi Securities Exchange (NSE) Main Fixed Income Securities Market Segment on 21 May 2026, subject to receipt of regulatory approvals and completion of post-allotment processes, I&M said.

For Kenya’s debt capital markets, the oversubscription suggests demand for corporate fixed-income instruments remains strong, particularly for issuers with established track records and clear use-of-proceeds disclosures. If more banks and corporates successfully tap the market, it could deepen secondary-market liquidity at the NSE and broaden funding options for private sector growth.

I&M said the MTN programme is part of a broader effort to diversify its funding base and strengthen balance sheet resilience, and that the first tranche supports its longer-term strategic positioning in Kenya and the region.