Kenya Power managing director Ben Chumo speaks at the Sarova Stanley
hotel in Nairobi on June 2, 2016. PHOTO | SALATON NJAU | NATION MEDIA
GROUP
Kenya Power has procured a Sh50 billion ($500 million) long-term syndicated loan to refinance its existing loans.
The facility, signed between the NSE-listed electricity distributor and Standard Chartered Bank, is in two tranches including a Sh35 billion loan comprising a ten-year tenor guaranteed by the World Bank (through the International Development Association) and Sh15.1 billion having a seven-year tenor.
“The proceeds of the facilities will be applied towards refinancing Kenya Power’s existing commercial loan facilities,” said the power utility in a statement, adding that the loans will have a two year grace period followed by equal semi-annual repayments.
The State utility said the loans would enable it reduce its total financing costs, extend maturities beyond existing terms and improve its liquidity position.
“They will harmonise documentation (including financial undertakings) and further improve KPLC’s ability to fund future capital expenditure through internal sources,” it added.
Standard Chartered Bank was the lead arranger for the hybrid financing.
READ: Kenya Power secures Sh42bn funding to connect homes
The facility, signed between the NSE-listed electricity distributor and Standard Chartered Bank, is in two tranches including a Sh35 billion loan comprising a ten-year tenor guaranteed by the World Bank (through the International Development Association) and Sh15.1 billion having a seven-year tenor.
“The proceeds of the facilities will be applied towards refinancing Kenya Power’s existing commercial loan facilities,” said the power utility in a statement, adding that the loans will have a two year grace period followed by equal semi-annual repayments.
The State utility said the loans would enable it reduce its total financing costs, extend maturities beyond existing terms and improve its liquidity position.
“They will harmonise documentation (including financial undertakings) and further improve KPLC’s ability to fund future capital expenditure through internal sources,” it added.
Standard Chartered Bank was the lead arranger for the hybrid financing.
READ: Kenya Power secures Sh42bn funding to connect homes
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