News Column

Kenya,Uganda : RVR concludes final drawdown of $164 million

July 15, 2014

With the acquisition of $69.6 million, the Uganda and Kenya line's concessionaire, Rift Valley Railways (RVR), has concluded the final drawdown of the $164 million.

RVR raised the fund through major global and East African funding agencies to finance its five-year turnaround programme.

The debt facility was included in the total $287 million capital funding package that was offered in the form of a series of loans which included $40 million from the African Development Bank (AfDB), $32 million from Germany'sKfW Bankengruppe and $22 million from the International Finance Corporation (IFC).

It was also comprised of $20 million from FMO (the Dutch development bank), $20 million from the ICF Debt Pool and $10 million from the Belgian Investment Company for Developing Countries (BIO).

Kenya'sEquity Bank offered a $20 million loan, from the private sector.

The regional rail operator said total capital investment in 2014 will exceed US$ 100 million, some of which will go towards adding 1,400 wagons to the current fleet.

RVR would use the money to boost its haulage capacity by restoring the rail infrastructure from Mombasa to Kampala.

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Source: TendersInfo (India)

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