TransCentury secures Sh2 billion in capital as bond deadline nears
By Reuters | March 15th 2016
TransCentury Ltd said on Tuesday it had entered an agreement with Kuramo Capital to inject $20 million in fresh capital as the electrical equipment, logistics and engineering firm races to repay an outstanding five-year convertible bond due in 10 days' time.
"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, describing Kuramo as an Africa-focused investment manager.
Shares in TransCentury have plunged more than 70 percent in the past year, raising concerns about its ability to repay the $75 million bond that falls due on March 25.
The company in October said it planned a fund-raising programme over the next six months after conducting a strategic review. More information would be offered at a later date, TransCentury said, adding the process was still subject to regulatory and shareholder approval where applicable.
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