Equity Group Holding has taken over KSh 2.1 billion East Africa cables loan. EA Cables 2018 financial report reveals a huge debt portfolio amounting to KSh3.55 billion owed to several lenders; Standard Chartered Bank Kenya $25.6 million, Standard Chartered Bank Tanzania $5.32 million, Ecobank Kenya $1.61 million, State Bank of Mauritius $2.85 million, and Credit Bank Kenya ltd $38,200.
The East African reports that Equity Group will refinance EA cables existing debt over a longer period thus reducing the monthly principal loan repayments. The transaction will allow EA cables to plow back cash flows into the business to return it to a strong financial footing.
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Equity Bank will take over and restructure loans over a 10-year tenure. The gross loans acquired by Equity bank amounted to $20.46 million.
EA cables had delayed the release of the financial reports for the year ended 31 December 2019 citing debt restructuring negotiations. The savings from this transaction will be captured in the financial reports for the year 2019 expected to be released on July 31.
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