KenGen plans to complete capital raising of $340m by year end
An engineer releases steam at the two main pips at the KenGen Geothermal Energy Power station in Naivasha, some 117km (73 miles) from the capital Nairobi, January 12, 2009. Geothermal energy is the natural heat stored within the earth's.The energy is manifested on the earth's surface in the form of fumaroles, hotsprings and hot and altered grounds. To extract this energy, wells are drillled to tap steam and water at high temperatures (250-350 C) and pressures (600-1200 psi) at depths of 1-3km for electricity generation, the steam is piped to a turbine, which rotates a generator to produce electrical energy. The station produces the bulk of geothermal power produced in Kenya. REUTERS/Antony Njuguna (KENYA)
Francisco Rojas
9 Jul 2014
KenGen is finalising its financing with $340 million with $171 from a rights issue on the stock market and the other half from government sources this year. The aim is to use the money to balance the firms accounts and be able to acquire more capital to expand current projects.
KenGen expects to complete financing of up to $340 million with $171 from a rights issue on the stock market and the other half from government sources, as reported by Reuters.
The same source reports that, since the Government holds “70% of the stakes” it might add a bit more funds but there are not more details clarified at this stage.
“Between now and August, it’s likely that we will have got government approval of what it will contribute to the rights issue, which will then enable us to start finalizing our information memorandum for approval,” Albert Mugo, KenGen managing director and chief executive, said on Tuesday in an interview with Reuters.
The end goal for Mr. Mugo and KenGen is to be able to increase their debt level by balancing their books and increasing the country’s power capacity and reach 15 thousand MW by 2030.
In order to do so, geothermal is a viable option in the country, where it is readily available and as stated by Reuters, KenGen “will add a total of 327 MW from geothermal and wind power” by the end of the year.
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Source: Reuters Website
