Nairobi, 27 March 2012 Africa Finance Corporation (AFC) and Athi River Mining (ARM) today announced an investment of fifty million United States Dollars (US$50,000,000) by AFC to support ARM’s expansion initiatives across Eastern and Southern Africa. ARM intends to use the investment to expand its operations in Kenya and Tanzania, as well as to grow the business regionally.

The AFC investment highlights ARM’s significant growth in earnings and capacity over the last five years as well as its future growth potential. ARM is now the second largest cement operator in Kenya. ARM currently produces approximately 1 million tonnes per annum of cement in Kenya and is constructing an integrated plant to further add 1.5 million tonnes per annum cement capacity in Tanzania.

The transaction marks AFC’s first bilateral investment in Kenya. The investment is subject to approval by the Kenyan Capital Markets Authority.

Athi River Mining, headquartered in Nairobi, Kenya, is a rapidly expanding regional cement and industrial minerals company, listed on the Nairobi Securities Exchange. ARM was founded in 1974 by H J Paunrana. The Company has operations in Kenya, Tanzania, Rwanda and South Africa.

AFC is a Development Finance Institution established in 2007 as an African-owned and private sector led financial institution. AFC seeks to improve African economies by proactively creating, acquiring, financing and managing infrastructure, industrial and financial assets. AFC is as an investor, developer and financier of infrastructure projects and infrastructure related firms across the Continent. Mr Andrew Alli, President and Chief Executive Officer AFC, said “We are delighted to be partnering with ARM to expand its business across the East African region. The Company is a homegrown champion in the region’s cement sector and we are impressed with what the team, led by the MD, Mr Pradeep Paunrana, has accomplished in the last few years.

AFC is very excited by the growth opportunities in East Africa, and we look forward to expanding our portfolio of investments in Kenya and the region.

Mr. Rick Ashley, Chairman of ARM stated “We are so pleased to welcome AFC to Kenya and to ARM. We believe this investment together with the cash flows from the Kenya and Tanzania businesses will enable the Group to secure its place in the East African and regional markets over the next 5 years. It will enable us continue delivering the strong growth associated with ARM in future years. Further we believe the terms clearly demonstrate the value creation that our expansion policy has been designed to deliver”.

ARM’s CEO, Mr. Pradeep H Paunrana, commented “We welcome the investment by AFC and the entire management at ARM is now looking forward to another 5 years of growth and regional expansion. ARM has established a track record of building world class cement and clinker plants and earning a superior return for our investors. As we go forward, our mission is not just to manufacture and distribute cement efficiently, but also to enrich the communities around us. ARM as a business will always have a significant input on the development of Africa and its people. Our relationship with AFC will enable us to contribute even more to our mission”.