Kenyan infrastructure company said on Tuesday it had entered an agreement with Kuramo Capital, an Africa focused investment manager, to inject $20 million in fresh capital in the Nairobi Stock Exchange-listed company. The investment will complement other funding options to repay an outstanding five-year convertible bond due in 10 days.
“This investment by the strategic investor will complement other funding options to settle the outstanding convertible bond and fund infrastructure projects,” TransCentury said in a statement.
The infrastructure company has lost more than 70 percent of its value in the past year, raising fears it would not be able to repay the $75 million bond. It got a new board in January, months after it said it planned a fund-raising programme over the next six months after conducting a strategic review.
TransCentury said the process was still subject to regulatory and shareholder approval where applicable.