By the way I mentioned it here a while back, EABL is going through vey lean times because of that diageo loan and largely f***ing up its beers which have made consumers opt for competitor products or spirits.

Why do I smell a rights issue here?

For the time being, EABL has scaled down its regional expansion strategies. The firm had earlier expressed interests in going into Ethiopia and South Sudan. But Diageo has since bought a stake in an Ethiopian brewer, locking out EABL out of that market. #Ethiopia_Play_Down!!!

Interest rate surge dims EABL profit growth prospects


Beer maker EABL’s plans to bounce back to profit growth could be impeded by the rising yields on Treasury bills.

Interest rate payments on East African Breweries Limited’s (EABL) Sh19.5 billion loan borrowed from its London-based parent company Diageo is pegged on the 364-day Treasury bill rate, plus a 1.5 per cent premium.

The coupon rate on the 364-day paper has risen by three percentage points since June to the current level of 11.7 per cent.

This means EABL is repaying the Diageo loan at an effective rate of 13.2 per cent, from about 10 per cent just two months ago.