Why Why Why then is Kengen doing a rights issue?

@sparkly
Kengen is doing a rights issue for funding the following;
Olkaria I Unit 6 extension 70MW
Olkaria V 140MW
Olkaria VI 140MW
That search for a partner in a PP model is being too ambitious and a PR exercise just like the road annuity program.
You know in this country such projects is where deals are cut.

Or float with the tide.

Reminds me of !@#$ ciano!

We call them GOK firms. Decisions are never alighned to your interest as a shareholder. Don't be surprised by the current twist here. Start learning from @S.MutagaIII and keep off GOK firms!

@Muthawamunene
Thought you were posting the information memorandum for the rights issue.
That is the hot info we are waiting for

@Othelo;
Not wait but called off kabisa NBK style.
Strategic partnership with a parastatal is a no go zone.
They will just rely on loans from the likes of JICA

KGN ultimately intends to balance its Debt/Equity ratio. The mode is what's up for debate.

The Rights when successful will need earnings to match or exceed the expanded shares. Do the new geo & wind plants suffice? If not EPS will be greatly compromised.

The PPP eases pressure on KGN's balance sheet from taking on too much debt and it can use retained earnings to buff up equity.

As for KQ to finance the new fleet, on paper, intended the following; The Afreximbank (debt-PDP) package, Cash (Rights) & internal funds. Of course that had mixed results operations wise & delivery timing.

Industry practice it seems, from Boeing:
https://www.fitchratings...e/pressrelease?id=987478

KGN ultimately intends to balance its Debt/Equity ratio. The mode is what's up for debate.

The Rights when successful will need earnings to match or exceed the expanded shares. Do the new geo & wind plants suffice? If not EPS will be greatly compromised.

The PPP eases pressure on KGN's balance sheet from taking on too much debt and it can use retained earnings to buff up equity.

As for KQ to finance the new fleet, on paper, intended the following; The Afreximbank (debt-PDP) package, Cash (Rights) & internal funds. Of course that had mixed results operations wise & delivery timing.

Industry practice it seems, from Boeing:
https://www.fitchratings.../pressrelease?id=987478[/quote]
Boeing's goal is to sell planes. KQ stretched itself [over-legeraged] and left little room for error or market disruption. Then came the perfect storm & K was clobbered.

KK did something similar but it managed to pull out with cost-cutting and that it wasn't as leveraged as KQ.

Leverage does goose returns (RoE) but has to be used judiciously e.g. Centum [though I worry about them as well] which has divested some assets [UAP, sale of parts of Two Rivers] to manage debt levels.

KQ's directors were only looking at the upside because they had no skin in the game. The losses do not affect them yet the gains would gain them accolades & perks.

NAIROBI: Kenya Electricity Generating Company (KenGen) is planning to start selling carbon credits on the Nairobi Securities Exchange (NSE) by March next year. The electricity generator is scouting for direct buyers for its carbon credits in the spot markets ahead of an expiry of its UN-­backed, exchange market deal next year.

“We were looking at December this year, but to provide for necessary approvals we should be selling by March next year. We are targeting local companies who wish to buy carbon credits to reduce their carbon footprint and make their products more competitive,”

Director for Regulatory and Corporate Affairs Simon Ngure said at a media briefing. The trade will be handled by the Environment and Clean Development Mechanism, a fully-fledged department within the Regulatory Affairs Division at KenGen. The company, which is awarded credits for emitting less carbon in the market, recently received over 18,000 carbon credits from the redevelopment of Tana Hydro Power Station. Carbon is now being tracked and traded like any other commodity and any company can buy the credits from someone else to reduce their carbon emission footprint.

Read more at: http://www.standardmedia...-credits-on-local-bourse