Companies
Chandaria kin prepares to repay Sh2.5bn of NCBA loan after plant sale
Thursday, October 14, 2021
NCBA Branch in Nairobi. FILE PHOTO | NMG
Summary
- Grit has entered into an agreement to purchase Opal’s manufacturing and warehousing facilities in Mlolongo and will lease them to the company for an initial 25 years, with the option to extend the lease for 10 years.
- Mr. Dinge is part of the larger Chandaria industrial family that includes businessman Manu Chandaria.
- The transaction has been structured so that Mr. Sachsen will pocket some of the money, while other amounts will be used to pay off the NCBA loan and further expand the manufacturing facility.
Matters Chandaria will repay a loan of more than Sh2.5 billion it took from NCBA Bank Kenya #ticker: NCBA after its company Orbit Products Africa Limited (Opal) completes the sale of its factory to the Grit Real Estate Income Group based in Mauritius for almost Sh6 billion.
Grit has entered into an agreement to purchase Opal’s manufacturing and warehousing facilities in Mlolongo and will lease them to the company for an initial 25 years, with the option to extend the lease for 10 years.
Mr. Dinge is part of the larger Chandaria industrial family that includes businessman Manu Chandaria.
The transaction has been structured so that Mr. Sachsen will pocket some of the money, while other amounts will be used to pay off the NCBA loan and further expand the manufacturing facility.
The exact amount Opal owes NCBA was not immediately clear, but sources familiar with the matter said the loan exceeds $ 2.5 billion. NCBA CEO John Gachora declined to comment on the matter.
“This innovative sale and leaseback transaction is among the largest in the subcontinent, and the strategic partnership with Grit represents an important long-term commitment from Orbit and reaffirms our commitment to Kenya and the region,” Matt said in a statement. .
“The proceeds from the transaction will substantially further strengthen our balance sheet, positioning Orbit for expansion and extensions of products and categories, to provide better service and support the ambitious growth plans of our pan-regional and multinational clients.”
Opal is the contract manufacturer for global companies such as Reckitt Benckiser, Colgate-Palmolive and Unilever on the 20-acre site.
The company has operated in Kenya for close to 50 years and employs more than 600 people in the region.
“In addition, it is expected that due to the increased post-transaction manufacturing capacity, the factory workforce and middle management will expand by 20 to 25 percent, resulting in the addition of approximately 100 jobs. “Grit said in a statement.
Grit is financing the investment with loans from the International Finance Corporation (IFC) and private equity firms.
The IFC is providing $ 25 million (Sh2.7 billion), while Ethos Mezzanine Partners GP Proprietary Limited and BluePeak Private Capital GP will invest $ 31.5 million (Sh3.5 billion) in a bond to be issued by Grit.