With over 53 million dollars loan to pay in yen denomination, East African Portland Cement is headed for rough waters. The Yen has appreciated against the Kenya Shilling by almost 40%. If EAPC profits wont be dented, they will be wiped out, period. {|=

Results will be out today.......Get ready for a loss.

Sure-you are not the only one who has questioned the sanity of the Board and senior managers at EAPC re this Yen loan. The amount of losses EAPC has made would have made anybody swap it locally with Ksh, but no.
I wonder what the shareholders talk about at the AGMs. The size of the chicken portions?

The usdjpy is at 15yr low since this is read as usd vs jpy. Anyway the yen has gained against major currencies. The swiss franc too has done the same. The $ safe haven status is at stake as per the moves of the yen (despite japan being in heavy debt) & franc plus gold & silver.
EAPC will bleed on this huge yen gains. It's becoming suicidal to borrow in forex as the money sys is under stress since 2008. It's a good thing gov shelved that eurobond. I don't think the yen will gain anymore going forward since forex COT (Commitment of Traders) shows a bullish extreme of yen positions. This warns of a major turn just like what happened to the eur/usd. I also expect the BoJ (bank of japan) to intervene on the yen strength since the jap econ is on the ropes & exports matters to this econ.

I agree with kizee. more to this companies should not always look to govt to bail them when its their own blunder (lack of planning)

I believe this thread was discussing what investors anticipate is going to happen in relation to the company's financial results.

The moral or political debate as to whether or not GOK SHOULD provide this subsidy is a separate issue, except insofar as it raises a question regarding Management's judgement in entering into the financing agreement on the terms and in JPY. But to debate that, we'd need greater insight into the actual terms of the loan, the purpose of the loan and the return that the firm has generated from investing the loan proceeds.

@kizee - How do you trade KES? Private or for a bank? The spreads are a killer!