France Telecom-backed Telkom Kenya is in talks to refinance a KSh8bn (E77m) facility in Q1 this year. Standard Chartered previously confirmed that it is advising on the process, which started last year.
The negotiations could reportedly result in a forex…
France Telecom-backed Telkom Kenya is in talks to refinance a KSh8bn (E77m) facility in Q1 this year. Standard Chartered previously confirmed that it is advising on the process, which started last year.
The negotiations could reportedly result in a forex swap, to help shield the debt from foreign exchange fluctuations, says local daily The Nation. The newspaper says the facility initially consisted of a six-month local currency bridge loan, converted into Euro debt after a refi. The latest efforts could turn it into a corporate bond issue or syndicated loan, Standard Chartered regional head of capital markets Salmon Kitololo told the newspaper.
Bleak results threaten listing plans
Meanwhile, Telkom Kenya may have to delay its planned minority listing after figures showed a loss in 2008. France Telecom’s annual report shows that the Kenyan fixed and mobile operator posted a loss of E97m (KSh10bn) that year, on revenues of E107m.
This means an IPO would have to wait the Nairobi Stock Exchange (NSE) requires groups to post a profit for at least three years to list their shares.
“The issuer must have declared positive profits after tax attributable to shareholders in at least three of the last five completed accounting periods to the date of the offer,” the NSE says in its listing manual.
The bleak results were blamed mostly on a E57m goodwill charged linked to investments needed for Telkom’s mobile launch – under the Orange brand – and to the costs of integrating its fixed-line and mobile operations.
When France Telecom and Dubai-based Alcazar Capital bought 51% of Telkom Kenya in December 2007, they agreed, along with the government, to list a minority stake on the Nairobi exchange within five years.
At the time, it was suggested the private investors would list a combined 11% stake, while the government would list around 30%.
FT and Alcazar own roughly 40% and 11% of Telkom Kenya respectively, while FT also controls the strategic committee that makes recommendations to the board. The government owns the remaining 49% in the operator.
