KENGEN BOND HEADED FOR OVERSUBSCRIPTION

THE KENYA ELECTRICITY GENERATING COMPANY, KENGEN IS ALREADY EXPLORING THE GREENSHOE OPTION TO RAISE AN EXTRA 10 BILLION SHILLING FROM ITS 15 – BILLION, 10 - YEAR BOND ISSUE. KENGEN MANAGING DIRECTOR EDDIE NJOROGE SAYS ALL INDICATIONS ARE THAT THE BOND ISSUE WILL BE OVERSUBSRCRIBED, WITH THE FINAL OUTCOME EXPECTED ON TUESDAY, SEPTEMBER THE 29TH. THE BOND IS EXPECTED TO BE LISTED ON THE 9TH OF NOVEMBER, A EVENT THAT WILL COINCIDE THE AUTOMATION OF BOND TRADING AT THE NAIROBI STOCK EXCHANGE.
WITH THREE WORKING DAYS LEFT BEFORE THE KENGEN BOND INITIAL PUBLIC OFFER CLOSES THE COMPANY IS WAXING CONFIDENT OF AN OVERSUBSCRIPTION. IN FACT, KENGEN MD EDDIE NJOROGE IS SO OPTIMISTIC, THAT HE HAS CONFIRMED THAT ALL INDICATIONS SO FAR ARE THAT THE COMPANY WILL OPT FOR THE GREEN SHOE OPTION TO TAKE AN EXTRA TEN BILLION SHILLINGS OFF THE TABLE. THIS IS ON TOP OF THE 15 BILLION SHILLINGS THAT WILL HAVE ALREADY BEEN RAISED.
NJOROGE VIEWS THIS AS VINDICATION FOR THE DECISION TO PEG INTEREST ON THE BOND AT 12.5 PERCENT, A LEVEL WHICH HAD BEEN CRITICIZED FROM SOME QUARTERS AS TOO HIGH WHEN COMPARED TO SIMILAR INSTRUMENTS IN THE MARKET…

KENGEN SAYS THAT SHOULD ALL FACTORS REMAIN POSITIVE, IT WILL RETURN INTO THE MARKET WITH A MEDIUM TERM NOTE EARLY NEXT YEAR. THE 10 YEAR BOND IS EXPECTED TO LIST AT THE N-S-E ON THE 9TH OF NOVEMBER, BY WHICH TIME THE NEW AUTOMATED BOND TRADING SYSTEM AT THE N-S-E IS EXPECTED TO HAVE GONE LIVE.
HE SPOKE AT THE LAUNCH OF THE LISTING OF SHELTER AFRIQUE’S ONE BLLION SHILLING, FLOATING AND FIXED RATE MEDUIM TERM UNSECURED NOTES AT THE NAIROBI. SHELTER AFRICA IS A HOUSING COMPANY THAT HAS PROJECTS ALL OVER THE CONTIENNT. THIS IS SHELTER AFRIQUES THIRD NOTE SINCE THE YEAR 2000.