KenGen closing $272 million fund raising for development and debt service
KenGen is about to successfully close a fund-raising campaign for up to $272 million in a shares issue, which will include participation of Public Investment Corp, a South Africa based pension fund as a new 5% stakeholder in the company.
We have been reporting about plans of Kenya Electricity Generating Company (KenGen) for fundraising for its development activities. It now seems the company has entered into a deal that could see it completed the sale of the 4.4 billion shares that were on offer during its rights issue offer in 2016, as reported by Citizen TV.
This follows news, that South African pension fund, Public Investment Corporation entered into talks with KenGen to buy the remaining 351.2 million shares that were not taken up during the offer.
The deal is valued at Sh2.3 billion, meaning KenGen has hit its initial target to raise Sh28.7 billion or around $272 million.
With the deal, South Africa-based Public Investment Corp. will have a stake of 5.33% in KenGen. This is though still subject to regulatory approval in Kenya.
KenGen has been on a capital raising agenda as it plans massive investments in energy projects.
The firm has ongoing projects in the Olkaria geothermal fields as well as plans to construct a wind park in Meru.”
Source: Citizen TV Kenya