According to a report by Reuters, Kenya's ARM Cement has announced that it is seeking up to US$90 million via a privately placed five-year bond to retire more expensive short-term debt. The company witnessed its market share in Tanzania and Kenya growing to 20% from 15% in five years.
ARM Cement reported a pretax loss in the nine months to 30 September due to foreign exchange losses associated with its borrowings, including for a new clinker plant that is now boosting margins.
CEO of the company Pradeep Paunrana commented that his firm planned to raise US$75 million via a five-year bond, with an option to add US$15 million if the issue was oversubscribed.
Bamburi Cement and ARM have voiced their concern that the Chinese contractor on the Standard Gauge Railway Project is importing cement when it could source entirely from local suppliers.