Connect with us

Hi, what are you looking for?


KenGen PIBO fetches 77pc extra

NAIROBI, Kenya, Oct 28 – The recently concluded KenGen Public Infrastructure Bond Offer (PIBO) was oversubscribed by 77 percent and raised Sh26.6 billion.

KenGen Managing Director Eddy Njoroge told a media briefing on Wednesday that they received applications from 2,715 retail and 489 institutional investors who applied for Sh4.4 billion and Sh22.2 billion respectively.

“As the retail (category) was a little undersubscribed by Sh600 million from the Sh5 billion allotment pool, the amount (Sh600 million) will then be taken to the institutional (pool) making the total allocation to Sh20.6 billion,” he explained.

Retail investors will receive the full allocation as will the 114 investors who applied for up to Sh20 million in the institutional pool.

“All those above Sh20 million will be allocated the remaining balance on a pro-rata basis at the rate of 91.54 percent,” the MD added of the offer which attracted interest from all over the country, Kenyans in the Diaspora as well as Canada, United Kingdom, USA, Denmark, Netherlands and Singapore.

The institutional investors had given bank guarantees or commitments to pay by October 30 and thus the refunds will be processed next week through the Electronic Funds Transfer.

Mr Njoroge said they have requested for approvals from the Capital Markets Authority and the Ministries of Energy and Finance to exercise the green-shoe option, which will see the company take up an additional Sh10 billion.

“This means that we will be taking a total of Sh25 billion as we had indicated in our prospectus,” he said.

Trading of the bond will start on the secondary market of the Nairobi Stock Exchange on November 9 with the funds raised expected to be invested in additional power generation.

Advertisement. Scroll to continue reading.

At the same time, Mr Njoroge said they were in discussion with Japan International Cooperation Agency (JICA), AFD, European Investment Bank and KfW for the financing of Ol Karia IV.

“If there’s a gap, that’s the time we’ll determine whether we’ll go the same route (bond offer) or you we can do a syndicated fund. But we are still discussing with them for the two projects which will cost Sh97.5 billion ($1.3 billion),” he said.

He also added that KenGen was ready to partner with France to construct a nuclear plant in the country.

“It depends on the demand which is projected. We are projecting demand to go up to 3,000 Megawatts by 2018 which is about the time you need to do a power plant,” Mr Njoroge said adding that this would be integrated with the ongoing plans to develop other forms of energy.

This followed revelations by Prime Minister Raila Odinga earlier in the week that the European country had expressed its willingness to help Kenya harness its nuclear energy.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...