This archive report was first published on 5 July 2020.
July 5, 2020 - Nairobi, Kenya
Regional insurer Jubilee Holdings Limited (JHL) has strengthened its investment in Bujagali Energy Ltd (BEL) by acquiring an additional 9.44 percent stake, increasing its shareholding in the Ugandan-based firm to 18.24 percent from 8.8 percent.
The shares valued at $40 million were previously held by SN Power, the technical partners of BEL.
SN Power, which remains with an economic majority of 55.45 percent shares in BEL, focuses on investing in clean, renewable energy on a commercial basis in emerging markets.
As a fully-owned subsidiary of Norfund, the Norwegian Investment Fund for Developing Countries, SN Power's primary focus is on hydropower.
BEL owns the 250MW Bujagali Hydropower Project, which was built at an estimated cost of $900 million through a combination of debt and equity financing.
According to Jubilee Holdings' Chairman Nizar Juma, the increased investment in Bujagali is part of the insurer's strategy to hold a diversified and conservative portfolio of investments totaling Ksh111.2 billion ($1.11 billion).
With total assets of Ksh130.2 billion ($1.3 billion) as of December 31, 2019, Jubilee Holdings' core investments include quoted securities, government bonds, real estate, unquoted securities, and projects generating US dollar returns.
“We are very pleased with this additional investment in Bujagali and have confidence that it will continue to provide us with stable and consistent returns as has been the case with all our existing investments,” said Mr Juma.
Following the exit of former partners Sithe Global in 2018, Jubilee Holdings secured the opportunity to increase its shareholding in Bujagali.
The Bujagali Hydropower Project is widely regarded as the most successful public-private partnership in the power sector in sub-Saharan Africa and has been used as a model for subsequent projects in the region.
Commissioned in August 2012, Bujagali has put an end to years of constrained economic growth caused by an insufficient and unreliable power supply in Uganda.
It remains the first independent power producer in Uganda and one of the largest Clean Development Mechanism projects.
“JHL would like to extend its appreciation to all partners and stakeholders that have supported us in completing this deal,” Mr Juma said.
Bujagali provides up to 50 percent of Uganda’s electrical energy requirements and has created over 200,000 indirect jobs and supported over 800,000 new electricity connections since its commissioning.
The project has also improved air quality by reducing carbon dioxide emissions by approximately 1 million tonnes per annum.
