Commercial banks that agree to swap their multi-billion shilling debt for a stake in Kenya Airways #ticker:KQ will be required to lend the airline an extra Sh18.1 billion at an interest rate of about 6.65 per cent, principally to refurbish aircraft engines.
The Treasury, which is KQ’s top shareholder, has asked the 11 banks that the airline owes billions of shillings to set up the dollar-denominated fund that will earn them an annual interest based on three-month USD London Interbank Offer Rate (Libor) plus 5.35 percentage points.
