Stanbic IBTC, a Nigeria-based lender, and infrastructure financer Africa Finance Corporation (AFC) have emerged the biggest beneficiaries of the Sh14.1 billion that was invested by the UK sovereign wealth fund CDC Group in cement manufacturing firm ARM in 2016.
CDC Group is said to have invested the sum last year for a 40 percent stake in the cement manufacturer.
According to reports by Business Daily Africa, ARM used the loan to reduce the short-term loan it took from Stanbic by repaying Sh1 billion. This reduced its indebtedness from Sh2.1 billion to Sh1.1 billion.
It further reduced its debt to AFC by Sh1.5 billion. Its current commitment to the infrastructure financer stands at Sh4.1 billion.
The cement maker, which was reportedly cash-strapped prior to CDC Group investment, also made a repayment of Sh87.8 million to GTA Bank Kenya, a local lender.
This ensured it ended last year with a total indebtedness of Sh13 billion, a significant drop from Sh24 billion it posted in 2015.