Kenya Airways

Kenya Government Takes Control of Kenya Airways in Debt Swap

Posted on by The Editorial Team
Kenya Government Takes Control of Kenya Airways in Debt Swap

NAIROBI (Capital Markets in Africa) – Kenya’s government and domestic lenders agreed to convert $405.3 million of Kenya Airways Plc debt into equity, giving the state a controlling stake and diluting other shareholders including Air France-KLM. The government, which has given Kenya Airways shilling and U.S.-dollar loans totaling $238.1 million, will increase its stake to 48.9 percent from 29.8 percent, according to statements published in the Nairobi-based Standard newspaper on Monday. Lenders owed $217.2 million will convert…

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Kenya Airways Debt Swap May Give State a Controlling Stake

Posted on by The Editorial Team
Kenya Airways Debt Swap May Give State a Controlling Stake

NAIROBI (Capital Markets in Africa) – Kenya’s government agreed to swap loans it provided to Kenya Airways Ltd. for equity, a conversion that may give the state a controlling stake in the national carrier, Treasury Secretary Henry Rotich said. The government will also guarantee 77 billion shillings ($745 million) of the airline’s debt to lessors and domestic banks, enabling Kenya Airways to extend its loan repayments to 10 years, Rotich told reporters Tuesday in the capital, Nairobi….

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