Athi River Mining will convert 125 million shillings worth of corporate bonds into shares in the company as existing shareholders will be asked to approve the creation of 25 million new shares for this purpose.
The bonds were launched in October 2005. Of the 800m raised 600 was for completion of clinker plant in Kaloleni (near Mombasa) and 200 million was for repayment of bank debt.
Other corporate bonds include Faulu Kenya, PTA Bank and Mabati - with few new issues expected and little trading in them. Previous corporate bond giants - Safaricom and Celtel (who also retired their bonds early), opted to get bank financing the last time they needed expansion funds.