Listed Kenyan firms are seeking to tap the Eurobond market to finance their expansion strategy and reduce exposure on shilling denominated loans.  These plans come on the back of a $2 billion debut Eurobond sale by the Kenyan government early next year to build infrastructure in the country, Bloomberg reports.

Kenya Power Ltd., the country’s sole electricity distributor, is considering selling Eurobonds to help fund its expansion plans and reduce its exposure to the domestic currency, Acting Managing Director Ben Chumo told Bloomberg on Nov. 6.

The state owned power distributor plans to spend $700 million by 2017 to build electricity substations and transmission lines to enable the country increase its power production to 5,000 megawatts from the current capacity of about 1,700 megawatts.

It plans to start the process of obtaining a credit rating before it issues the bond “at the beginning of next year,” Chumo said.

ARM Cement Ltd., the country’s second-biggest cement producer, said it’s considering selling Eurobonds to fund its $300 million expansion program.

Another company that could also look to float a Eurobond is KenGen (Kenya Electricity Generating), the country’s main power producer which is also state-controlled. KenGen plans to raise up to $5 billion by 2018 to help triple electricity output to 3,379 megawatts.

It plans to raise $1.65 billion by selling stock to existing shareholders, which will more than quadruple its number of shares in issue.

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