TransCentury has reached a settlement with its bondholders halving its principal debt to $40 million (Sh4.04 billion) in unclear circumstances, just two days before the bond’s maturity date.
Following last weeks’ equity injection of $20 million (Sh2.02 billion) by South Africa’s Kuramo Capital, an investment manager, TransCentury’s outstanding debt is now down to a similar amount.
The investment firm, which is listed at the Nairobi Securities Exchange, says it is in the “process of raising the balance” and that its “bondholders are comfortable with the structure in place to retire the outstanding total agreed debt.”
The process remains subject to regulatory approvals, including the approval of the Capital Markets Authority and shareholders where applicable, TransCentury noted in a statement sent to newsrooms late Wednesday night.
“This agreement validates the confidence Kuramo and other investors have in TransCentury and reflects our commitment to maximizing investor value,” Zeph Mbugua, TransCentury’s chairman, said in the statement.