This month, the country’s power generating firm KenGen is set to pay out the first redemption installment of the 10 year Public Infrastructure Bond the company issued in 2009.
The Ksh 25 billion bond was structured such that bondholders received semi-annual interest payments or coupons in the first two years, while the principal sum would be redeemed every six months for 8 years in equal instalments.
Over the last two years, bondholders have been receiving tax free coupons at 12.5% and this month the firm is expected to pay out the last of the interest payments and the first redemption installment. Bondholders are expected to receive Ksh 1.56 billion for the redemption; the next redemption payment will be in October and the next 6 months after that. There will be 16 redemption payments in total with the last one in October 2019.
In an announcement published on the NSE website yesterday, the firm stated that the redemption and fifth interest payments would be made on Monday 30th April 2012 to bondholders whose names appear on the Register of Bondholders at the close of business on Friday 13th April 2012.