Shareholders of East African Portland Cement Co, Kenya’s second-biggest maker of the building material, approved plans to issue a KES3bn (US$40.2 million) bond, the Daily Nation reported.
The sale will fund the repayment of a yen-denominated loan, the Nairobi-based newspaper said, citing Managing Director John Nyambok. The company expects approval from the Capital Markets Authority and the subsequent sale of the bond to take place before March 31, it said.
In 1990, East African borrowed KES7.6bn to renovate its plant, the newspaper said. Repayment of the loan has reduced the company’s profit due to foreign-exchange fluctuations, it said.