Kenya Electricity Generating Company (KenGen) is in the final stages of fully redeeming its Ksh25 billion Public Infrastructure Bond (PIBO).
The largest energy producer in Kenya has made the second last installment for the redemption of the infrastructure bond worth Ksh1,562.5 million as well as interest payment of Ksh193.7 million to its bond holders.
Chief Executive Rebecca Miano says that the second last installment redemption of the 10-year PIBO was paid on April 30 and the last installment redemption and interest is due for payment on October 31.
“The Ksh25 billion PIBO was floated in 2009 with an interest of 12.5% to be paid semi-annually alongside 16 equal redemptions of which 15 have been already been paid,” said Ms Miano on Monday.
According to the CEO, the investment of the bondholders has enabled the company to increase its installed capacity from 1021MW to the current 1631MW in 11 years which has propelled the energy producer’s revenue from Ksh13.1 billion to Ksh35.9 billion during the period under review.
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“We are grateful to the bondholders who have shown confidence in the company by investing in the bond,” she added.
When it was floated, KenGen’s PIBO was an instant hit with investors both domestic and foreign.
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The KenGen PIBO was and remains the only corporate infrastructure bond that has ever been issued and traded on the floor of the Nairobi Securities Exhange (NSE).
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