Quantum Investment Bank Limited ('Quantum') and Palma Capital Limited ('Palma'), both based in the Dubai International Financial Centre have been retained as the exclusive placement agents for the launch of a shariah compliant aircraft leasing fund ('ALIF Fund') to be managed by the International Airfinance Corporation (IAFC) with Airbus and the Islamic Development Bank ('IDB') as anchor investors and strategic partners.
The new aircraft leasing fund was launched at a signing ceremony held in London on June 23rd, 2014. The ceremony was hosted by HRH Prince Turki Bin Salman Bin Abdulaziz Al Saud, Chairman of the Board of Quantum in the presence of the Airbus delegation led by Mr. Habib Fekih, President of Airbus Group MENA. Also present were Mr. Moulay Omar Alaoui, Chairman of Palma Capital and Dr. Idriss Ghodbane, CEO and Board Member of Quantum Investment Bank.
With a targeted size of US$5 billion from a combination of equity and debt, the fund will 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 will operate 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 (GCC) and Organization of Islamic Conference (OIC) member countries.
' Airbus has been very successful in growing its market share in the MENA region over the last two decades and this innovative financing initiative will enable us to satisfy our customers' financing needs even more effectively,' said Mr. Habib Fekih, President of Airbus Group for MENA & Africa who is also the chairman of the board of ALIF Fund.
'We are extremely pleased to partner with Airbus and IDB in this transaction as we believe this is a pioneering Islamic investment initiative that will contribute to the development of Islamic capital markets. Quantum Investment bank will always be dedicated towards financial innovation and our goal is to propose to our clients new investment opportunities tailored for their financial needs', said Dr. Idriss Ghodbane, CEO and Board Member of Quantum Investment bank who is also a Board member of IAFC
'The establishment of ALIF Fund was derived from the strong interest of both investors and financiers for sharia compliant instruments that generate attractive and stable returns stemming from the ownership of commercial aircraft assets over an extended period of time. This is further reinforced by the inherently significant, growing need and demand for aircraft by airliners in the GCC and OIC member states,' according to Moulay Omar Alaoui Chairman of Palma Capital who is also the President & CEO of IAFC.
Airbus is a leading aircraft manufacturer with the most modern and comprehensive family of airliners on the market, ranging in capacity from 100 to more than 500 seats. Airbus champions innovative technologies and offers some of the world's most fuel efficient and quiet aircraft. Airbus has sold over 14.000 aircraft to more than 500 customers and operators worldwide. Airbus has achieved more than 8,500 deliveries since the first Airbus aircraft entered into service. Headquartered in Toulouse, France.
International Airfinance Corporation (IAFC) is a Aircraft Leasing company offering complete aircraft financing & leasing solutions tailored to specific client requirements in its core markets: the Middle East, Asia, Africa & CIS.
IAFC has been a pioneer in introducing innovative Islamic financing solutions to the aviation industry, strategically positioning itself to provide unique products and services. IAFC dedicates significant resources to industry research related to developments in the aircraft asset, airline, and financing markets in order to identify opportunities for its investor client base at early stages.
The Islamic Development Bank is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in December 1973. The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The Bank is also required to establish and operate special funds for specific purposes.
Quantum Investment Bank Ltd (DFSA Regulated), is a fully fledged investment bank, based in DIFC. The bank offers investment opportunities and solutions including fixed income, money markets, public and private equity, structured products and commodities in a shariah compliant way. It provides best-in-class advice and execution on high complex transactions across a large variety of products.
Palma Capital Limited (DFSA Regulated), is an investment and corporate finance advisory firm that seeks and identifies high growth investment opportunities that are tailored to the needs of its investor base and arranges innovative and structured financing solutions for its clients. With a geographical reach that extends from the Middle East and African continent, Palma targets the financial, aviation, and real estate sectors.