Business
World Bank’s investment arm buys a 7.4% stake in Kenya Airways
The World Bank investing arm, the International Financing Corporation (IFC), will own 7.4 percent of Kenya Airways after conclusion of a rights issue through which it is expected to buy 143 million shares of Kenya’s national carrier.
The corporation, which did not own Kenya Airways shares prior to the rights issue, bought 2.5 million rights from shareholders who forfeited their portion in the ongoing cash call.
The purchase entitled IFC to apply for another 140.5 million shares in line with Kenya Airways rights issue guidelines.
The full uptake of the shares will see IFC own about 7.4 percent of the 1.9 billion Kenya Airways shares that will have been issued at the conclusion of the current share sale.
“They (IFC) already bought 2.5 million rights during the trading period. That then allows them to buy additional shares,” said Kenya Airways in an e-mail response to the Business Daily newspaper in Nairobi (the Kenyan capital).
Irrevocable commitments
As a reputable international financier, IFC’s entry into Kenya Airways’ shareholding register will boost investor confidence in future prospects of the airline, and make it easier for the airline to raise debt capital.
The IFC has committed to take up US$25 million worth of shares in the issue and had approved an additional US$80 million in debt to fund Kenya Airways’ expansion plans.
