ARM Cement is set to raise up to KES10.7bn (US$105m) in debt funding from private investors, to retire short-term debts, Kenya's Business Daily newspaper reported.
The cement manufacturer is now raising the amount through a privately placed five-year bond whose offer opened on Thursday last week and runs until 2 December.
“The proceeds from the five-year bond will be used to replace existing short term borrowings. There is no increase in total debt only refinancing existing short-term debt,” said Pradeep Paunrana, chief executive of ARM Cement.
The company plans to raise US$90m (KES9.2bn) from the debt securities, with an option to take in an extra US$15m (KES1.5bn) should the original amount be oversubscribed.