KenGen Launches Power Bond

Nairobi -- Power producer KenGen announced that it aims to add 500 megawatts of electricity to the national grid with proceeds from the $204 million public infrastructure bond.

“It is part of KenGen’s short term strategy to stabilize the power situation in the country by commissioning 500MW from fast-tracked projects by 2012,” said Eddy Njoroge, KenGen’s Managing Director.

He said that Kenya will require $4.5 billion over the next 10 years for power production to meet rising demand.

Prime Minister Odinga who presided over the launch said Kenya should strive for home-grown solutions to the power crisis facing the country.

“We have to think out of the box. It requires huge resources to meet the demand for power in the country and it does not help to always listen to advisors from outside,” he said.

The Prime Minister also added that other corporate bodies with strong balance sheets should issue infrastructure bonds to tap into local resources.

KenGen’s bond is the first corporate offer targeting the retail segment. Investors will enjoy a fixed net interest rate of 12.5 per cent.

The offer closes on September 29, 2009 and is expected to start trading at Nairobi Stock Exchange on November 9, 2009.

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