Cases & Deals

Citigroup underwrites Kenya Airways rights issue, the largest ever in East Africa

Clients Citigroup Global Markets Ltd

Jones Day advised Citigroup Global Markets Limited in connection with a rights issue by Kenya Airways Limited, Sub-Saharan Africa's third largest airline and the national flag carrier of Kenya, to raise 14.5 billion Kenyan shillings (US$172 million). The rights issue is the largest ever in East Africa.

The offering was agreed to be underwritten by Citigroup, who served as sole global coordinator and international bookrunner on the transaction. CfC Stanbic served as lead transaction adviser. The company's two principal shareholders, the Government of Kenya and KLM Royal Dutch Airlines, both participated in the rights issue, with the Government increasing its shareholding to 29.8% and KLM increasing its shareholding to 26.73%. Separately, the International Finance Corporation spent 2 billion Kenyan shillings (US$23.7 million) in the rights issue to acquire a 9.56% shareholding.