KEFI Gold and Copper Plc has announced that its subsidiary, KME Minerals (Ethiopia) Holding S.C., has appointed CBE Capital Investment Bank as adviser for a proposed issuance of U.S. dollar-denominated, gold-linked preference shares aimed at selected financial institutions in Ethiopia.
The announcement was made at the Ethio-British Business Investment Forum in London. According to the company, the proposed instrument — dubbed “Gold Preference Shares” — is intended to support growth in Ethiopia’s gold and critical minerals sector while also strengthening ties with major Ethiopian financial institutions.
KEFI said the preference shares would be redeemable at the end of an eight-year term and would carry an annual 15 percent coupon. Investors would also receive an additional return if the gold price received by KEFI exceeds the price prevailing at the time of issuance.
The company said the proceeds are expected to support expansion opportunities and future growth initiatives, with no dilution for shareholders at the listed parent company level.
The proposed financing comes shortly after the launch of the Tulu Kapi Gold Project, which KEFI describes as Ethiopia’s first internationally project-financed gold development. The company said the new capital would help accelerate early-stage work beyond the current development plan, including preparations for the second mine at Tulu Kapi, the Tulu Kapi Underground Gold Mine, as well as early exploration programmes elsewhere in Ethiopia.
KEFI Executive Chairman Harry Anagnostaras-Adams said the appointment of CBE Capital reflects innovation in Ethiopia’s capital markets and growing momentum in the country’s gold sector. He said the Tulu Kapi project is already funded and under way, and that the new investment is intended to provide additional growth capital while preserving financial flexibility.
CBE Capital Chief Executive Officer Zemedeneh Negatu said the firm was pleased to support KEFI with what he described as the first instrument of its kind in Ethiopia. He said the bank looks forward to helping arrange the financing as KEFI expands its future funding needs.
