KenGen to Raise Ksh25Bn Green Bond H2 2019
KENGEN is looking to raise funds from the capital markets in the second half of 2019. According to the company’s chief executive officer, Rebecca Miano, the firm aims to raise money in October after redeeming its Ksh25 billion 10 year bond issued in 2009.
Kengen’s ownership structure is 70 per cent government owned and 30 per cent privately owned.
Mrs Miano told Reuters that the finance team was looking at different possibilities; asset backed securities or green bonds.
Green bonds are used to raise money for projects in the renewable energy sector and environmentally friendly ventures. These types of bonds are popular with investors keen on environmental conservation.
The electricity generating company is turning toward renewable energy sources such as wind and underground steam. It is shifting its focus from hydro power which is affected by unpredictable rain fall patterns.
Mrs Miano said that geothermal power accounted for almost a third of the company’s annual electricity production.
Kengen is planning to develop additional geothermal plants and wind farms in the coming four years.