KenolKobil Ltd., a Kenyan fuel retailer with operations in nine other African countries, began a private placement to raise 1.7 billion shillings ($19.6 million) to fund its day-to-day business.
The placement is a continuation of an existing commercial-paper program, Andre DeSimone, chief executive officer at Kestrel Capital East Africa Ltd., the arranger and placing agent for the transaction, said in an e-mailed response to questions today from the capital, Nairobi.
“The purpose of the funds is to finance short-term working capital needs,” he said. “We expect the new program to be near fully subscribed over the next couple of months, depending on market liquidity and the company’s funding needs.”
KenolKobil, Kenya’s biggest oil-marketing company by market value, said in May it returned to profit in the first quarter after posting a 6.28 billion-shilling loss last year caused by foreign-exchange losses. Last week, Chief Executive Officer Jacob Segman retired after 16 years at the helm and was replaced by David Ohana, general manager of the Kenyan unit.
Shares of KenolKobil have declined 40 percent this year, the worst-performing Kenyan stock, according to data compiled by Bloomberg.