Stanbic Bank Secures KES 4.3 Billion Term Debt Facility for National Cement Company Ltd’s Expansion

Subheading: Landmark Transaction Aims to Boost Production Capacity and Infrastructure Development

Nairobi, 11th April 2024: Stanbic Bank Kenya proudly announces the successful financial close of a groundbreaking deal with National Cement Company Ltd (NCCL), marking the acquisition of a KES 4.3 billion term debt facility. This strategic partnership is set to partially refinance NCCL’s foreign currency liabilities incurred during its expansive capital expenditure phase.

Driven by a mutual vision to enhance production capacity and contribute to infrastructure development in Kenya and East Africa, the collaboration between Stanbic Bank and NCCL underscores the bank’s dedication to supporting key industries and fostering sustainable economic growth across the region.

Mphokolo Makara, Executive, Head of Energy and Infrastructure East Africa at Stanbic Bank, expressed, “Our purpose at Stanbic Bank is to propel Kenya’s growth through partnerships with industry leaders like National Cement. NCCL’s local and regional market insights position them as catalysts for sustainable growth through domestic employment and manufacturing capacity.”

Stanbic Bank provided NCCL with a comprehensive financial solution, including local currency term debt and customized foreign currency forwards, as a Senior Lender. This tailored approach effectively managed the client’s foreign currency exposure relative to domestic operations, mitigating challenges posed by volatile FX market dynamics.

Alakh Kohli, Executive, Head of Corporate and Investment Banking at Stanbic Bank Kenya and South Sudan, stated, “This transaction highlights our commitment to fostering innovation and supporting the expansion endeavors of leading corporates in Kenya. We are honored to facilitate this milestone for NCCL and eagerly anticipate continued collaboration in driving economic progress.”

The KES 4.3 billion term debt facility empowers NCCL to sustainably deliver high-quality construction inputs at competitive prices, furthering economic and infrastructure development initiatives. As a pivotal supplier across East Africa, NCCL’s operations play an indispensable role in propelling growth and prosperity throughout the region.

Established in 2008, National Cement Company Ltd stands as East Africa’s foremost integrated clinker and cement manufacturer, playing a vital role in Kenya’s vibrant construction industry.

Kenya Re to grow expertise in new, emerging insurance risks like cyber security and climate change

Nairobi, Kenya 16th February 2024- Kenya Reinsurance Corporation (Kenya Re) is teaming up with local insurers to build a group of experts in new and growing risk areas such as cyber security and climate change.

The capacity building initiative will be rolled out through the recently established Kenya Re Academy and will enroll local professionals in diverse insurance risk areas.

“We are focusing on enhancing industry knowledge and building skill sets in line with the evolving nature of our business,” says the Kenya Re Group Managing Director Dr. Hillary Wachinga. He was speaking at an inaugural award ceremony attended by 31 insurance and brokers, hosted by Kenya Re.

The Corporation, he said, had launched the incentive program to encourage prompt premium payments by the insurers to help the national reinsurer meet its reinsurance obligations and safeguard its profitability.

“By helping us make more money, you give us the drive and the money to invest in research, development, and new ideas. You also help the local insurance and reinsurance industry grow and improve the national economy because we keep more money here,” he said.