ARM asks for time after missing bond payment

The Nairobi Securities Exchange-listed that the ARM Cement missed its June 2018 interest payment on a privately placed bond worth tens of millions of Kenyan shillings.

The bond was issued in 2015 with the medium-term notes (MTN) maturing in November 2020 and expected to pay interest each June and December, according to the Business Daily.

"We're asking our lenders to give us some time so that we can recapitalise the business, we're in negotiation for injection of between US$15m and US$20m in the next couple of weeks," said Mr Paunrana.

But bondholderls have questions over why the payment has not been made. "The company (ARM) did not pay interest that was due on 6 June and we are in the dark," said one of the bondholders who did not wish to be named. The cement-maker issued bonds worth some KES389m (US$3.85m) in December 2015 as part of plans to raise a total of up to KES10.5bn.

Its latest annual report puts the company's outstanding bonds at KES1bn as of December 2017.