ADGM’s aviation finance structure utilised in sukuk issuance

Dubai: The Abu Dhabi Global Market (ADGM) said it had facilitated the transaction of a 12-year sukuk issued by Natixis and Noor Bank.

The transaction marks a milestone for ADGM’s aviation finance and leasing sector. It is the first instance where an ADGM structure has been used specifically to hold aircraft assets for issuing Sharia-compliant bonds, the financial centre said in a statement.

The transaction follows the successful completion of the first aviation sale and leaseback transactions arranged by Natixis in ADGM in late 2016 and the registration of three international aviation leasing companies earlier this year. Natixis designed and arranged the sukuk for this new transaction.