Kenya: KenGen’s US$ 200 million bond sale oversubscribed

Alexander Richter 30 Eyl 2009

KenGen's 15 billion-shilling ($201-million) bond sale, to raise financing for mainly geothermal projects may be oversubscribed.

Reported by Bloomberg, Kenya Electricity Generating Co.’s 15 billion-shilling ($201-million) bond sale may be oversubscribed, Managing Director Edward Njoroge said.

If the sale is oversubscribed, KenGen, as the company is known, has approval to raise an additional 10 billion shillings, Njoroge said today in an e-mailed statement.

“There are strong indications that the KenGen Public Infrastructure Bond Offer, which closes in five days, may achieve its target of raising 15 billion shillings,” he said.

Final results of the sale, which began on Sept. 8, will be published on Oct. 30. The bonds will be listed on the Nairobi Stock Exchange on Nov. 9, according to Njoroge.

KenGen will use the funds to increase generating capacity by 500 megawatts by 2012, mainly from geothermal energy, he said. Most of the electricity produced by the company currently is from hydropower plants, Njoroge said.”

Source: Bloomberg