Abu Dhabi: The National Bank of Abu Dhabi PJSC (NBAD), along with Arab Banking Corporation, have been mandated by the International AirFinance Corporation (IAFC) as underwriters, bookrunners and lead arrangers on a $400 million (Dh1.47 billion) senior secured Murabaha loan transaction.
The deal, which is IAFC’s inaugural syndicated loan, will finance the provision of five A330-200 aircraft on an operating lease to Kuwait Airways.
The cacility comprises an eight-year loan secured on the five 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 the IAFC.
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.
The IAFC is the first Sharia-compliant aircraft leasing fund dedicated to Airbus aircraft and seed-funded by Airbus and the Islamic Development Bank. The fund is looking to target the GCC, Middle East and North Africa (Mena), Commonwealth of Independent States (CIS) and south-east Asian airlines.
