Kenya Airways and Afreximbank sign fleet financing agreement covering 20 aircraft

Kenya Airways board approved (25-Jun-2012) a mandate for the African Export-Import Bank (Afreximbank) to arrange financing for the purchase of nine Boeing 787-800s, one 777-300ER and 10 Embraer E190 aircraft. The mandate was awarded to the Afreximbank following assessment of several financing bids after a RFP issued by Kenya Airways in Mar-2012. The financing package consists of a pre-delivery payments facility and an aircraft delivery finance facility. The E190s are scheduled for delivery during 3Q2012, while the 787 and 777-300ER deliveries are expected to commence during 1Q2014 and 4Q2014, respectively. The 787s will replace the carrier's 767 fleet and the E190s will be used for capacity expansion on African regional routes. Kenya Airways raised KES14.487 million (USD172.2 million) during recent rights issue. The proceeds will go to financing pre-delivery payments for a fleet of nine 787-800s. The airline is currently implementing a 10-year growth plan, expanding its fleet from 34 aircraft to 119 by 2021 and destinations from 57 to 115. [more - original PR]