Eight Kenyan banks including Equity and KCB have advanced national carrier Kenya Airways additional loans amounting to Ksh4.3 billion ($42.6 million) as part of the ongoing capital restructuring at the airline.
The new debt is backed by government guarantees, protecting the lenders from the national carrier’s default.
The airline, known by its international code KQ, defaulted on the lenders’ initial facilities of Ksh16.7 billion ($165.3 million) and instead issued them with shares amounting to a 38.1 percent stake as a compromise settlement.
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