Monday, 10 September 2007

$240m historic bailout for Tanesco

From The EastAfrican, Nairobi, Kenya

Alstom Power Rentals, from the US, will instal a power plant in Mwanza by the end of the year to generate 40MW.

History was made in Tanzania when a syndicate of the country’s own local commercial banks and pension funds raised a massive $240 million to fund the recovery of the Tanzania Electric Supply Company (Tanesco) in a deal that has illustrated just how deep the country’s capital markets have become.

It is the single largest corporate finance deal ever in East Africa -bigger even than the KenGen IPO in Kenya in 2004 and far surpassing Safaricom’s Ksh12 billion ($179 million) bond issue of 2005 in Kenya.

Arranged by Stanbic Tanzania Ltd, the six-year loan amortises after two years and has a government guarantee.

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