adminNAIROBI — Kenya Airways’ inaugural B787 Dreamliner flight has landed in France. The B787 Dreamliner flight services the Nairobi-Paris route. According to a statement by the airline, the Dreamliner has been introduced in response to growing demand on the route.
“This has boosted the airline’s capacity into Europe by 8 percent,” read the statement from the airline.
The B787 Dreamliner replaces the B767 aircraft which previously served the route.
Kenya Airways is also set to receive an additional Boeing aircrafts on lease from GE Capital Aviation Services Ltd (GECAS). GECAS, the commercial aircraft leasing arm of GE announced in May that it will lease two Boeing 737-800 aircrafts to Kenya Airways to expand the carrier’s fleet.
“The aircrafts come from GECAS’ existing order book with Boeing and are scheduled for delivery in early 2015,” read a GECAS statement.
Kenya Airways currently operates more than 40 aircraft to more than 50 destinations.
In addition to the GE lease, Kenya Airways had received two B777-300ER aircraft.
Of the two aircrafts one currently flies Guangzhou while the second one is to fly between Nairobi and Amsterdam.
Meanwhile, after 17 years, the timing is finally on Kenya’s side as the government readies its first Eurobond sale, betting the nation’s growth prospects and resurgent demand for emerging-market debt will keep borrowing costs contained.
Investors may demand a yield of about 7 percent to buy the securities, less than the 7,48 percent yield on similarly rated Zambian bonds, according to Raza Agha at VTB Capital Plc in London. Aly-Khan Satchu at Rich Management Ltd in Nairobi sees a range between 7,5 percent and 8 percent, depending on whether Kenya sells $2 billion or $1,5 billion.
“We are still living through another six to nine months of an environment which is very, very beneficial for issuers given the high demand for emerging markets,” Yerlan Syzdykov, who helps oversee the equivalent of about $5,4 billion as head of emerging markets bond and high yield at Pioneer Investments, said in an interview in London yesterday. “A lot of countries, especially in sub-Saharan Africa, will use this as an opportunity to tap the market.”
East Africa’s largest economic growth will probably accelerate to 6,3 percent this year, from 5,6 percent in 2013, driven partly by tea and cut flower exports, according to International Monetary Fund estimates.
African dollar debt returned 8,3 percent this year, with the average yield dropping to a one-year low of 5,06 percent last week, JPMorgan (JPM) Chase & Co indexes show. Gains have been fuelled by speculation central banks in Europe and the US will keep monetary policy accommodative.
Kenya first considered selling Eurobonds in 1997, and would be following a record year for Africa in 2013. That included a first-time offering by Rwanda, and sales by Nigeria and Ghana.
Zambia, which shares Kenya’s B1 rating at Moody’s Investors Service, sold $1 billion of Eurobonds priced to yield 8.6 percent in April. The rate was 7,51 percent yesterday, up from a record low of 7,35 percent two days earlier. — CAJ News/Bloomberg.
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