CfC Stanbic Bank signs USD 50 Million Revolving Credit facility with ARM Cement

Athi River Mining Cement Limited, Managing Director, Pradeep H. Paunrana (left) and CfC Stanbic Bank, Director of Investment Banking, East Africa, John Ngumi during the signing of a $50 million revolving credit facility deal between CfC Stanbic Bank and Athi River Mining Cement Limited.

One of East Africa’s leading cement manufacturers, the Nairobi Securities Exchange-listed  ARM Cement Limited,  has secured a USD 50 million (Kes 4.5 billion)  Revolving Credit Facility from CfC Stanbic Bank Limited. 

 

This structured facility, which among other things allows for repayments and redrawing, will complement ARM’s other banking facilities by providing added financial flexibility, thereby helping the company maintain optimal funding in a dynamic environment. 

The facility was arranged and underwritten solely by CfC Stanbic’s investment banking arm. 

“We are very pleased to have finalized this facility”, said ARM’s Managing Director, Pradeep Paunrana. “Now that our Tanga clinker plant is commissioned, ARM is well on its way to becoming East Africa’s leading cement manufacturer, and part of the reason for this progress is the way we have been able to exploit the increasing sophistication of the financial sector. Over the last few years we have taken on board among others a corporate bond, an equity-linked note and a convertible bond, Throughout this period CfC Stanbic has been a key financing partner, both as a major banker and provider of innovative financing solutions, and we are delighted to have worked with them on this facility.”

“The ARM transaction once again demonstrates our continuing commitment and ability to support our clients,” added CfC Stanbic’s John Ngumi. Mr. Ngumi went on to add that such customised financing solutions were increasingly what clients were demanding, especially in sectors such as the cement industry that require large financing amounts, and where conventional banking tools need supplementing with innovative structures. 

ARM Cement Limited was established in 1974 as a mineral, extraction and processing company. It has been listed on the NSE since 1997. Its primary business is now cement with ancillary businesses in industrial minerals, lime, fertiliser, sodium silicate and special building products, and currently has a market capitalisation of Kes 41 billion.