Nairobi, Kenya, March 14, 2003—The International
Finance Corporation, the private sector arm of the World Bank Group, has
signed an agreement to provide $15 million financing to Kenya Airways.
IFC’s loan will partially finance predelivery payment for the purchase
of two new Boeing B777-200ER aircraft, which is part of the airline’s
fleet renewal program. The introduction of these modern, extended-range
aircraft will enable the company to expand its network and significantly
increase passenger and cargo services, supporting Kenya's tourism and high-value
horticulture export industries and strengthening Nairobi’s position as
a regional business center.
Barclays Bank Plc, as the arranger, has played a key role in bringing together
a consortium of international and domestic banks for this predelivery financing.
Mr. Declan Duff, Director of IFC’s Infrastructure Department, said, “The
private provision of infrastructure is one of IFC’s strategic goals in
Sub-Saharan Africa, and we are very happy to support a well-run and efficiently
managed airline in an industry that faces regional and global challenges.
By providing $15 million of the total predelivery financing of $54 million,
IFC is making an important contribution toward bridging the financing gap
and helping Kenya Airways modernize its fleet and achieve its intention
of becoming a world-class carrier.”
“I am especially pleased with this investment because IFC led the privatization
of Kenya Airways as the strategic and transaction advisor on behalf of
the government of Kenya in the mid-1990s,” added Ms. Haydee Celaya, Director
of IFC’s Sub-Saharan Africa Department.
Kenya Airways Limited is the national flag carrier of Kenya. It is 26 percent
owned by the international Dutch carrier KLM and 23 percent owned by the
government of Kenya. Other shareholders include Kenyan institutions and
individuals (totaling 46.9 percent) and non-Kenyan registered stockholders
IFC finances viable private sector investments in the developing world,
mobilizes capital in the international financial markets, helps clients
improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through FY02, IFC has committed more than $34 billion of its own
funds and arranged $21 billion in syndications for 2,825 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY02 was
$15.1 billion for its own account and $6.5 billion held for participants
in loan syndications.