Kenya Airways Ltd. (KNAL) will get an $80 million loan from the International Finance Corp. to fund capital expenditure, said Titus Naikuni, chief executive officer of sub-Saharan Africa’s third-biggest carrier.
“We are undertaking a capital-intensive modernization program, which is estimated at $3.6 billion in the next 10 years, and our partners IFC have offered to lend us $80 million,” Naikuni told reporters in Nairobi, the capital, at an announcement about Kenya Airways’ share sale to current investors.
The IFC, the World Bank’s private-lending arm, may also spend as much as $25 million on Kenya Airways’ rights offer, Naikuni said. The IFC, which is currently not a shareholder, will be eligible to buy shares not taken up by current holders.
The stock sale, which begins on April 2, is being underwritten by Citibank Global Markets, said Evanson Mwaniki, chairman of Kenya Airways.
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