Kenya Wines Agency Limited (KWAL) has received a Ksh.3 billion loan from Absa bank Kenya to help fund the construction of its distillery plant at Tatu city.
The bank says it received authorization to lend the money via a competitive market offer and that it has already made the loan accessible for usage.
“The facility becomes available as the project continues and they draw it when they achieve milestones of the project,” said James Agin, the regional corporate banking director at Absa.
KWAL is building a plant to boost production and extend its product line in the alcoholic beverages sector with an investment of Ksh.4 billion in Tatu city.
This includes building extra office space, a factory, a warehouse, and increased packing capacity. It has spent Ksh.1.1 billion to buy 30 acres of land in Tatu city
KWAL’s continuous investments come while its parent company, the South African Distell Group, is in the process of being bought by Dutch brewer, Heineken.
Distell and Heineken’s activities in Kenya and abroad, which were previously handled separately, are expected to be reorganized as a result of the merger.
Heineken’s distribution businesses in Tanzania, Uganda, Kenya, and South Sudan will be transferred to Sunside Acquisitions Limited, a South African corporation owned jointly by Heineken and Distell.
Absa’s corporate banking branch has a long series of big-ticket credit facilities, including the loan to the alcohol manufacturing.
East African Breweries Plc (EABL) and Mabati rolling mills have also received funding from the bank.
“We are very clear about our ambition to be a partner of stories and a trusted advisor to our customers as they go through their growth ambition.’’
According to KWAL, the project is 35 percent complete and should be finished by August.
This is not the first time Absa is investing at Tatu City.
In August 2020, the bank signed a partnership with Tatu City for home buyers and developers to access preferential mortgages at the Kiambu County-based Special Economic Zone development.
In the MoU, Absa agreed to provide home ownership solutions such as construction loans, equity releases and Lariba mortgages, as well as insurance products such as mortgage protection, fire insurance and retrenchment cover.
Under the deal, applicants are enjoying up to 80 percent financing on normal mortgages as well as 100 percent financing on construction mortgages.
