Kenya to sell Eurobonds for potential pipeline projects

Kenya Pipeline Corporation (KPC) has been discussing the possibility of selling Eurobonds in order to finance the construction of its crude oil pipelines.

KPC Chairman John Ngumi, stated: "We are going to look for capital to finance these projects. It is more than likely that we are going to resort to the capital markets, but the reality is that will need to go to external sources. It will definitely be an external financing. The concept is there but it needs to be done systematically, otherwise it could be disastrous. We have to look at the timing.”

Continuing, he explained: “There will be a need to raise finance money in either the second half of 2017 or the first half of 2018. There are many possible sources of money. Eurobond is just one.”

KPC also intends to begin the construction of a crude oil pipeline in 2018, which will connect northern Kenya’s Lokichar town to a port in Lamu.

In addition, KPC also plans to expand its refined products pipeline. The pipeline flows from Eldoret, a town in western Kenya, to Kampala, Uganda’s capital. KPC also wants to increase its storage facilities in Nairobi as well as construct LPG storage and bottling facilities. Furthermore, Ngumi mentioned that the company will be involved in the construction of a proposed crude oil pipeline to Ethiopia.

Edited from various sources by Stephanie Roker

Sources: CNBC Africa, All Africa, Bloomberg

Read the article online at: https://www.worldpipelines.com/business-news/08072016/kenya-to-sell-eurobonds-for-potential-pipeline-projects/