KenGen intends to Redeem its 2009 Infrastructure Bond.

KenGen has revealed that it intends to make final payments to its 10-year bond holders by Thursday, 31 October, 2019. The Ksh. 25 billion infrastructure bond was issued on 2^nd November, 2009 when Hon. Uhuru Kenyatta was still the Finance Minister. The 10-year bond is priced at par and carries a 12.5 % annual coupon. In a statement issued by KenGen, the company said that interest payment will be at a fixed rate of 12.5 % per annum.  The interest will also be tax exempt on the principal amount of the Bonds outstanding on the record date (book-closure date) to the Bondholders whose names appear on the Register of Bondholders at the close of business on Friday, 11th October 2019. “All CDSC account holders are requested to update their bank, address, e-mail and telephone details at the CDSC through their Stockbroker and/or Custodian Bank,” said Paul Ndungi, the Company Secretary in a statement. After the last redemption payment, the bond will be delisted from the Corporate Bond list at the Nairobi Securities Exchange. During the launch ceremony in 2009, then Finance Minister, Uhuru Kenyatta said that Kenya’s capital market is vibrant enough to support the company’s bond and the government’s own targeted borrowing requirements, which stood at Sh 109.5 billion shillings at the time.. KenGen's infrastructure bond has a good take-up rate because the issue offered tax-breaks to bond holders KenGen generates 80 percent of Kenya’s electricity requirements. It sought funds from the bond to invest in diverse sources of renewable energy like geothermal, in line with the company’s strategy of investing at least Sh 40 billion in generation each year to keep up with rising demand.