Kuramo Capital has said it will acquire an undisclosed stake in TransCentury, an infrastructure company listed on the Nairobi Stock Exchange, for $20m.

"The investment will complement other funding option to settle the outstanding convertible bond and fund infrastructure projects," TransCentury said in a statement.

Shares in TransCentury have plunged more than 70% in the past year, raising concerns about its ability to repay the $75m bond that falls due on March 25.

In a statement to shareholders, the Board assured that it continues to implement a fund raising programme with other investors expected to come on board to write off the debt.

The Sh8bn convertible bond was issued in 2011 before TransCentury went public, by its subsidiary TransCentury Mauritius.

TransCentury has three operating divisions across 14 countries in East, Central and Southern Africa.

The company's operating divisions include: power infrastructure, infrastructure projects and engineering.

The company was established in 1997 by a group of Kenyan professionals and investors, who were appreciative of the opportunities to invest in growth sectors in Africa and provide such investments with the benefit of their corporate experiences.

In April 2009, the company's shares became available to qualified investors in an over-the-counter exchange operated by Dyer & Blair Investment Bank, as part of the original shareholders aims to provide a broad base of shareholders with the access to the TransCentury success story.

TransCentury is currently valued at Sh1.7bn with net assets in the region of Sh3.6bn, far below the outstanding bond principal amount.