Q2 Dec 14 Keshi Co

I am confused how the interest rate swap works in this question.

I don’t understand why the answer says that Keshi will borrow at L+0.4% but then receive only LIBOR – should they not receive LIBOR +0.30%?

How is the effective borrowing rate figure worked out?

Is the total possible benefit of 0.8% simply the difference between the basis differential?

Sorry SWAPS really confuse me!