Dubai: International Airfinance Corp Ltd is seeking to raise at least $1 billion (Dh3.67 billion) to buy 18 Airbus Group SE planes that will be leased to Saudi Arabian Airlines, according to three people with knowledge of the plan.
IAFC is exploring options including 12-year amortising loans to pay for 10 A330-300 jets and eight A320 narrow-bodies due for delivery in 2017, the people said, asking not to be identified because the information is private. It’s also considering the sale of bonds or its first sukuk next year. A spokeswoman for IAFC did not respond to calls and an email seeking comment. An airline spokesman didn’t respond to an email requesting comments.
Saudia, as the carrier is known, is taking delivery of a combined total of 30 Airbus and Boeing aircraft next year. It had ordered 20 A330 regional planes and 30 A320s at the Paris Airshow last year as part of plans to nearly double the fleet to 200 by 2020. The carrier is boosting orders to meet increasing demand for domestic travel and expanding its international route network as competition at home intensifies.
Dubai-based aircraft lessor IAFC has a portfolio of 55 new aircraft with a $4 billion asset value, according to its website.