Kenyan airline Kenya Airways will receive Kenyan shillings of E4.3 billion, or $ 42.5 million, from eight banks as part of the ongoing restructuring of its capital.
They are Equity Bank, Kenya Commercial Bank (KCB), Commercial Bank of Africa, I & M, National Bank of Kenya, Diamond Trust Bank, NIC Bank and Ecobank.
The operation recorded the defection of the bank Jamii Bora and Bank Chase, which were in the initial loan system. The latter did not participate in the last debt agreements that took place between April and December of last year.
Bank loans have an average interest rate of 7.2% – lower than the risk-free rate of 10.9% of one-year treasury bills.
Note that the loans will expire in 2027 and that the new debt is backed by government guarantees, protecting the banks from the default of the national carrier, still in financial difficulty.
Moreover, the government has already issued guarantees amounting to $ 13.9 million for this purpose, the objective being to be expanded in the coming years in accordance with the commitment of the banks to issue 175 million dollars of new loans to Kenya Airways.