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The Kenya Power and Lighting Company (KPLC) has received a US$500mn syndicated term loan facility arranged by Standard Chartered.

The financing is made up of a 10-year, US$350mn term loan with a US$200mn guarantee from the World Bank’s International Development Association, and a seven-year, KES15.18bn facility. Both have a two-year grace period followed by equal semi-annual repayments.

Standard Chartered acted as sole co-ordinator, bookrunner and initial mandated lead arranger.

“The proceeds of the facilities will be applied towards refinancing KPLC’s existing commercial loan facilities in order to achieve the following goals for KPLC: reduce total financing costs; extend maturities beyond existing terms; improve liquidity position, harmonise documentation (including financial undertakings) and further improve KPLC’s ability to fund future capital expenditure through internal sources,” a joint statement from KPLC and Standard Chartered says.

According to the bank, the transaction attracted a wide range of lenders in syndication, with total commitments in excess of US$470mn for the US dollar tranche and KES36bn for the Kenya shilling tranche.