KQ debt swap reveals bank loans pricing

A KENYA AIRWAYS PLANE. FILE PHOTO | NMG

The ongoing Sh23 billion debt-to-equity swap discussions between Kenya Airways #ticker:KQ and 11 local banks has revealed how each of the lenders priced their loans to the troubled airline.

Documents seen by the Business Daily show the interest rates charged by the banks diverged by up to 5.5 percentage points, indicating varying risk perceptions among the lenders.

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