I&M Bank has opened applications for the first tranche of its Domestic Medium Term Note Programme, seeking to raise KES 10 billion from investors through a public offer in Kenya.
The Medium Term Notes are being issued under a Kenya Shillings-denominated programme of up to KES 20 billion. The first tranche includes a greenshoe option of up to 30%, allowing the bank to increase the issue size in case of strong investor demand.
According to I&M Bank, the Domestic Medium Term Note Programme is intended to strengthen its funding base, improve financial flexibility and support long-term growth initiatives, including onward lending and regional expansion.
Key Features of the I&M Bank MTN Offer
The I&M Bank Medium-Term Note carries a fixed interest rate of 12.20% with a tenor of five years and six months. Interest will be paid semi-annually to investors, while the principal is expected to be repaid in full at maturity.
The MTN offer opened on 30th April 2026 and will close on 15th May 2026. The notes are scheduled for listing on 21st May 2026 on the Nairobi Securities Exchange Main Fixed Income Securities Market Segment. The minimum investment amount for the I&M Bank MTN has been set at KES 500,000, with additional investments accepted in increments of KES 50,000.
Who Can Invest in the I&M Bank Medium-Term Note?
The I&M Bank MTN offer is being made to the public in Kenya, subject to regulatory requirements and conditions contained in the Information Memorandum and Pricing Supplement.
Investors must have a valid and active CDSC account for listed securities such as shares and corporate bonds. I&M Bank clarified that a DHOW CSD account used for government securities will not be applicable for the MTN offer. Applications may be submitted by individuals, companies, trusts and institutional investors that meet the application requirements.
How to Apply for the I&M Bank MTN Online
Applications for the I&M Bank MTN can be made through the online e-IPO platform available on the bank’s investor portal. To accept the offer online, investors are required to read the terms and conditions of the offer, ensure they have an active CDSC account, complete the application form and upload proof of payment after submitting the application.
Applicants who submit a duly completed application will receive an acknowledgement confirming receipt of the application. There are no application fees for the I&M Bank MTN.
Payment Methods Accepted for the I&M Bank MTN
Accepted payment methods for the I&M Bank MTN include M-Pesa, EFT and RTGS bank transfers. For bank transfers, payments should be made to the I&M BANK MTN-TRUST ACCOUNT held at the Upper Hill Branch.
Institutional investors may also apply using an Irrevocable Letter of Undertaking or an Irrevocable Bank Guarantee. In the event of oversubscription, excess application funds will be refunded according to the refund policy outlined in the offer documents.
When Investors Will Receive the Notes
Following the close of the offer period on 15th May 2026, I&M bank will publish the final results of the offer and communicate allotment details to applicants through electronic mail. Successful applicants will receive a CDSC statement confirming the credit of the notes into their CDS accounts. The listed Notes are dematerialized and deposited in CDS accounts, allowing investors to trade them on the secondary market through the NSE after listing.
Taxation of the I&M Bank Medium-Term Note
The I&M Bank MTN is taxable under prevailing tax laws and regulations. Investors will pay a 15% withholding tax on interest income earned from the notes. However, capital gains tax and stamp duty remain exempt for listed Notes traded on the NSE. The programme is being arranged and placed by Standard Investment Bank Limited.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.