By Oliver Nabukeera
Regional rail operator Rift Valley Railways (RVR) has paid up USD 69.6 million as the last installment of the USD 164 million debt sourced from various leading global and East African financiers in 2011. The debt was part of the total USD 287 million capital financing package provided in the form of a series of loans meant to fund the company’s five-year turnaround program. These loans comprised USD 40 million from the African Development Bank (AfDB), USD 32 million from Germany’s KfW Bankengruppe and USD 22 million from the International Finance Corporation (IFC).
The debt package also includes USD 20 million from the Dutch development Bank FMO, USD 20 million from the ICF Debt Pool, USD 10 million from the Belgian Investment Company for Developing Countries (BIO) and USD 20 million from Kenya’s Equity Bank.
Earlier this year, RVR’s mother company Citadel Capital transformed its business model from a private equity firm to an investment company focusing on core subsidiaries in energy, cement, agrifoods, transportation and mining. As part of the transformation Citadel Capital changed its name to Qalaa Holdings in a bid to reflect their new corporate identity.
In a press release seen by the CEO Magazine Qalaa Holdings Managing Director Karim Sadek said, “Alongside a strong management team, the funding provided by these financial institutions has been key to turning around the fortunes of Rift Valley Railways. A portion of the proceeds from the drawdown will be used to sustain investments in GPS-based train operating technology, cargo-carrying capacity and infrastructure including rehabilitating 366 kilometres on the Nairobi-Kampala section of the line.