Kenya Airways Receives First Aircraft Arranged By Afreximbank

01-Apr-2014 Kenya Airways today took delivery of its first Boeing 787-800 “Dreamliner” next generation aircraft in Seattle, United States, with the start of the execution of the second phase of a $1.9 billion aircraft purchase transaction arranged by the African Export-Import Bank (Afreximbank).

The phase involves the delivery of 10 Boeing aircraft, comprising nine 787-800 “Dreamliners” and one 777-300ER jet, to Kenya Airways as part of the 20-aircraft purchase transaction for which Afreximbank is the mandated lead arranger.

During the first phase, which ended in November 2013, Afreximbank delivered 10 Embraer-190 aircraft to the airline as part of a delivery schedule that began in August 2012.

The Boeing delivery financing, for which Afreximbank is the global coordinator, comprises a senior US-Exim guaranteed tranche and a commercial tranche. Afreximbank is also acting as the arranger and underwriter of the commercial tranche, while Citigroup Global Markets, Inc. and JP Morgan Chase Bank, N.A. are the arrangers for the senior US-Exim guaranteed tranche.

Afreximbank is committed to supporting transactions that further Africa’s integration,” said Jean-Louis Ekra, President of the Bank. “Kenya Airways has established itself a leading airline on the continent. We are confident that this delivery will enable it to strengthen and expand its route network and, as such, bring about increased business connectivity across the continent.”

In May 2012, Kenya airways mandated Afreximbank to arrange the financing for the 10 Embraer-190 and 10 Boeing aircraft under a package consisting of pre-delivery payments facilities to fund advance payments to Boeing and Embraer, the aircraft manufacturers, and aircraft delivery facilities to fund the deliveries.

The transaction is part of the first phase of Kenya Airways’ fleet upgrade and a key component of its 10-year business plan for the period 2012 to 2021.