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majimaji		#1 Posted : Monday, August 31, 2009 7:09:00 AM
Rank: Veteran Joined: 4/4/2007 Posts: 1,162		In today's papers,Kengen have announced a public bond offer to finance power generation for the next 5 years How big is the offer? Any fresh details? In man prudence,in woman patience - Jacob Cats
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Chaka		#2 Posted : Monday, August 31, 2009 7:20:00 AM
Rank: Elder Joined: 2/16/2007 Posts: 2,114		The ad says for further info go to http://www.kengen.co.ke or email pibo@kengen.co.ke When you get the info,do give us the details here
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lennz		#3 Posted : Monday, August 31, 2009 7:42:00 AM
Rank: Member Joined: 5/13/2009 Posts: 35		But i got some clues about it ... The first tranche is valued khs 15.0bn with a green shoe option embedded. The sale period is slated for all of September 09 till 29th when it closes. I also know it will be amortized just like the debut kenyan infrastructure bond. The coupon will both be fixed and floating,the fixed one at around 12% and the floating pegged on either the prevailing 91-days T.bill or the 182-day T.bill weighted average rates at primary amrket. Any other questions/clarifications? .... The only place where dreams are impossible is your mind
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Kausha		#4 Posted : Monday, August 31, 2009 8:29:00 AM
Rank: Member Joined: 2/8/2007 Posts: 808		Somebody misadvised Kengen,12% for 10 year paper and looking for 15B?? They are not very serious! they definately will not get the 15B. This bond is a near junk bond in many ways. This company on stand alone basis other than the word Kenya and ownership of gava is a weak company. They generate negative cashflows most years and now with poor hydorology i expect minimal profits - below 500m or even a loss for the current financial year unless the elnino has floods to boot. The IFB had an average yield of 13.5% and it was a treasury bond,no cash flow concerns. some people even got 14.1% in the bidding. CFC stanbic gave 12.5% for a 7 year paper. Stanbic has less risk than Kengen. So why would the same investor buy the Kengen bond??? Rather wait for Centum which is rumored to be above this signficantly. Plus a good chunk of the money is going to hydro investments which means the risk of low rainifall and the big one against it is Gava has repossed geothermal resources for exploitation by geothermal devt. authority so kengen doesn't have a free reign here. I strongly believe kengen will struggle to repay this debt in the first 4 years or will shaft ordinary shareholders big time to pay this debt. Am already an equity holder and with a huge unrealized loss. The only way i would accept this paper is at a higher yield else am just taking on risk without realistic decent returns and a solid promise of being shafted from the equity end....
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VituVingiSana		#5 Posted : Thursday, September 03, 2009 2:29:00 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,366 Location: Nairobi		The only (maybe) redeeming is if it is tax-free (unlike stanbic) OR backed by government. Poor deal compared to IFB as Kausha pointed out. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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wanyuru		#6 Posted : Thursday, September 03, 2009 8:14:00 AM
Rank: Veteran Joined: 11/29/2007 Posts: 948		Two major incentives. the bond is tax exempted and has the average life of 6.25yrs as opposed to Stanbics 7 yrs and the Infrastructure bonds 8yrs. a return of 12.5% (withholding tax exempted) on a 6.25yr bond is not bad. guys. Yes am a slow walker,but i never walk backwards.(anonymous)
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ecstacy		#7 Posted : Thursday, September 03, 2009 10:07:00 AM
Rank: Elder Joined: 2/26/2008 Posts: 4,449		Issuer: Kenya Electricity Generating Company Limited. Description: Fixed Rate Long Term Unsecured Infrastructure Bonds Arranger: Standard Chartered Bank Limited Lead Sponsoring Stockbroker and Placing Agent: Standard Investment Bank Limited Financial Advisor: KPMG Total value: Kenya shillings Fifteen billion ( KShs. 15,000,000,000) subject to increase up to Kenya Shillings Twenty five billion( KShs. 25,000,000,000) pursuant to a Greenshoe Option of up to Kenya Shilling Ten billion ( KShs. 10,000,000,000). Maturity: Final Maturity in 2019 subject to early redemption in accordance with the Terms and Conditions Denomination: The noted to be issued in denominations of KShs. 100,000 and integral multiples thereof. Forms of notes: The notes will be issued in registered form. Issue price: The notes will be issued on a fully paid basis at par. Interest rate: 12.5 per cent per annum,payable semiannually in arrears. Redemption: Unless redeemed in accordance with the Early Redemption provision,the Bonds are scheduled to be redeemed in sixteen (16) equal semi-annual installments with the first payment being made after two (2) year grace period as further described in the Terms and Conditions. Listing: The notes shall be listed on the Fixed Income Securities Market Segment of the Nairobi Stock Exchange. Continuing Obligations: The issuer shall ensure compliance with the continuing disclosure and reporting obligations as prescribed by the Authority for issuers of securities listed on the Fixed Income Securities Market Segment of the Nairobi Stock Exchange.
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KulaRaha		#8 Posted : Thursday, September 03, 2009 11:39:00 AM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		This is a good investment,given its tenor of 6.25 yrs and yield of 12.5% NET. This emans int income is exempt from any tax...both with holding and corporate. Effectively this gives you a yield of 14.4%!!!!! Business opportunities are like buses,there's always another one coming Business opportunities are like buses,there's always another one coming
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VituVingiSana		#9 Posted : Thursday, September 03, 2009 2:07:00 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,366 Location: Nairobi		'Redemption: Unless redeemed in accordance with the Early Redemption provision,the Bonds are scheduled to be redeemed in sixteen (16) equal semi-annual installments with the first payment being made after two (2) year grace period as further described in the Terms and Conditions.' ____ So do I get a portion of the principal very 6 months after 2 years? Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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half_empty		#10 Posted : Friday, September 04, 2009 1:11:00 PM
Rank: Member Joined: 3/23/2007 Posts: 127		cons: according to cbk,annual inflation rate 23.51% pros: feel good factor for contributing to nation-building
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