Jubilee Holdings Limited (JHL) has purchased an additional 9.44 percent stake in Bujagali Energy Limited from technical partners SN Power for KSh4.2 billion ($40 Million). Consequently, the transaction increases Jubilee Holdings’ shareholding in Bujagali Energy Limited (BEL) from 8.8 percent to 18.24 percent.
Bujagali Energy Limited is the special purpose vehicle that owns the 250MW Bujagali Hydropower Project which cost approximately KSh95.4 billion ($900 million). The funding was through a combination of equity and debt financing. To-date Bujagali’s cumulated power availability is 99.6% (against 96% contracted) and until early this year it provided up to 50% of Uganda’s electrical energy requirements. The hydropower plant has supported over 800,000 new electricity connections since its commissioning.
Jubilee Holdings Chairman Mr. Nizar Juma says that the additional investment is in line with the Group’s strategy to hold a diversified and conservative portfolio.
Jubilee Holdings’ investment portfolio amounted to KSh111.2 billion as part of the total assets of KSh130.2 billion as at 31st December 2019. This additional investment in Bujagali will provide us with stable and consistent returnsJHL Chairman Mr. Nizar Juma
JHL’s core investment holdings include quoted securities, government bonds, real estate, unquoted securities, and projects that generate US dollar returns, including interests in Farmer’s Choice, and Seacom.
Bujagali was commissioned in August 2012 and remains the first independent power producer in Uganda and one of the largest Clean Development Mechanism projects. In July 2018, following the exit of former partners, Sithe Global, the opportunity to purchase a further interest by Jubilee Holdings from SN Power became available. The transfer was agreed upon in the financing agreements and has now been implemented. SN Power remains with an economic majority of 55.45% shares in BEL and is fully owned by Norfund, the Norwegian Investment Fund for Developing Countries.
Jubilee Holdings is an insurance group cross-listed on the three East Africa stock exchanges –The Nairobi Securities Exchange (NSE), Dar es Salaam Stock Exchange and Uganda Securities Exchange. It has a network of offices in five countries-Kenya, Uganda, Tanzania, Burundi, and Mauritius