KenGen eyes raising funds for geothermal development with green bonds

OLK02 wellhead plant of GEG at Olkaria in Kenya (source: Green Energy Geothermal)
Alexander Richter 18 Feb 2019

To continue pushing its ongoing ambitious geothermal development , KenGen is looking at green bonds to finance its activities.

Reported before the weekend, Kenya Electricity Generating Company (KenGen) is eyeing to raise funds on the market later this year possibly opting to issue Kenya’s first green bonds.

KenGen, listed on the Kenya Stock Market, is majority state-owned, while private investors hold around 30 percent of the company.

In discussions with CGTN, Rebecca Miano, CEO of KenGen, said that it plans to to got market once it redeems its 10-year, Kenyan Shillings 25 billion ($250m) bond in October 2019. Its finance team is looking at asset backed securities, but also at green bonds.

The Capital Markets Regulator of Kenya is expected to unveil regulations for private issuance of green bonds this week, which would pave the way for the first issue.

With additional 720 MW capacity currently being developed by KenGen, of which 80 MW is wind and the remainder geothermal, the company needs capital to continue pushing development.

Source: CGTN Africa