March 28 (Bloomberg) -- Rift Valley Railways, the operator of the Kenya-Uganda rail line, plans to raise $240 million over the next five years to fund its expansion, said an investor in the company.
The additional capital will supplement an existing $54 million bank facility and enable Rift Valley Railways to expand its operations in both countries, Gachao Kiuna, chief executive officer of TransCentury Ltd., said in an interview today in Nairobi, the Kenyan capital. RVR, as the company is called, has a 25-year concession to operate and manage the rail line.
“We are looking to raise $240 million to be deployed in the next five years as part of our investments to modernize RVR operations,” Kiuna said.
RVR plans to raise $100 million in loans from commercial banks and $140 million from the three main shareholders in the company, he said. Citadel Capital Corp. of Egypt owns 51 percent of RVR, while TransCentury holds 34 percent and Bomi Holdings of Uganda has 15 percent.
“RVR does not have a credit rating currently, though it may seek to have one in the future,” Judy Achar, RVR spokeswoman, said in a phone interview in Nairobi.
Kenya has been rated B+ by both Standard and Poor’s and Fitch Rating.
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