8.10 AM Tuesday, 19 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:07 06:20 12:29 15:54 18:33 19:47
19 March 2024

NBAD arranging Dh1.47bn syndication loan for IAFC

(File)

Published
By Staff

National Bank of Abu Dhabi (NBAD) is arranging $400 million (Dh1.47 billion) Shariah-compliant loan for International Air Finance Corporation (IAFC) to fund purchase of five aircraft.

The bank along with Arab Banking Corporation have been mandated as underwriters, bookrunners and lead arrangers to finance provision of five A330-200 aircraft on an operating lease to Kuwait Airways.

The Facility comprises an 8-year term loan secured on the 5 aircraft and is currently in syndication with an expected closing at the end of May.

The borrower is a 100 per cent owned subsidiary of a fund managed by IAFC.

“The aviation industry is one of the fastest growing industries in the West-East corridor and one of our five top priority sectors for our wholesale banking activity,” said Vasgen Edwards, the Global Head of Aerospace & Transport at NBAD.

“This unique transaction also highlights our expertise and expanding foothold in the Islamic finance segment.”

Earlier this year, NBAD co-structured a $913 million UKEF-backed sukuk closed by Emirates Airlines, making it the first time that a sukuk has been used to pre-fund the acquisition of aircraft.

IAFC is the first Shariah-compliant aircraft leasing fund dedicated to Airbus aircraft and seed funded by Airbus and Islamic Development Bank. The fund is looking to target GCC, Mena, CIS and Southeast Asian airline carriers.