RIYADH — International Airfinance Corporation (IAFC) has appointed Quantum Investment Bank and Palma Capital, both regulated by the Dubai Financial Services Authority, as exclusive Arrangers for Saudi Arabian Airlines ‘ largest ever aircraft leasing deal.
The deal consists of arranging debt and equity financing to acquire 30 Airbus aircraft A320-200 models and 20 aircraft A330-300 models to be leased to Saudi Arabian Airlines .
Aviation & Transport reports Ammer Al-Selham, chairman of the board of Quantum Investment Bank as saying: “Quantum aspires to strengthen its relationships with public and private institutions in Saudi Arabia in the near future and provide them with Shariah-compliant financing solutions.”
“We consider this as our modest contribution to the development of our economy and in line with the vision of our wise leadership towards a stronger Saudi economy and the well-being of its people.”
Saudi Arabian Airlines , the national carrier of Saudi Arabia, will become the first airline in the world to operate the Airbus A330-300 Regional, following an operating lease agreement signed with IAFC for 20 A330-300 Regional and 30 A320ceo.
Commenting on the announcement, Dr. Idriss Ghodbane CEO of Quantum Investment Bank, said: “I would like to thank our team who have been working for more than a year on this transaction. We at Quantum aim to provide our clients with the most innovative financing solutions in a Shariah-compliant manner and introduce to our investor base selected landmark transactions with attractive risk return profile.”
Moulay Omar Alaoui, CEO of IAFC and also chairman of Palma Capital, added: “We are very pleased to partner with IAFC and Quantum in this transaction. Palma is bringing a strong expertise in the aviation sector and a deep knowledge of the industry.” The move comes 12 months after Quantum and Palma were retained as the exclusive placement agents for the launch of a Shariah-compliant aircraft leasing fund (ALIF Fund) to be managed by the IAFC with Airbus and the Islamic Development Bank as anchor investors and strategic partners.
The aircraft leasing fund was launched at a signing held in London on June 23, 2014. The ceremony was hosted by Prince Turki Bin Salman Bin Abdulaziz Al Saud, chairman of the board of Quantum in the presence of the Airbus delegation led by Habib Fekih, president of Airbus Group MENA. Moulay Omar Alaoui, chairman of Palma and Dr. Idriss Ghodbane, CEO and board member of Quantum were present.
With a targeted size of US$5 billion from a combination of equity and debt, the fund aims to focus exclusively on Airbus aircraft. The objective of the Fund is to achieve a risk-adjusted medium to long-term capital appreciation while generating a quarterly cash dividend to investors. The Fund operates according to Shariah principles and will purchase brand new and second hand Airbus aircraft to be leased to airline companies in the Gulf Cooperation Council and Organization of Islamic Conference member countries.