The National Bank of Abu Dhabi PJSC (NBAD), along with Arab Banking Corporation, was mandated by the International AirFinance Corporation (IAFC) as Underwriters, Bookrunners and Lead Arrangers on a U$400 million 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 Facility comprises an 8 year term loan secured on the 5 aircraft and is currently in syndication with an expected closing at the end of May. The borrower is a 100% owned subsidiary of a fund managed by IAFC.
Vasgen Edwards, the Global Head of Aerospace & Transport at NBAD, said: “The aviation industry is one of the fastest growing industries in the West-East corridor and one of our five top priority sectors for our wholesale banking activity. This unique transaction also highlights our expertise and expanding foothold in the Islamic finance segment. We are extremely proud that in the first quarter of this year, NBAD was ranked as the world’s number one bank for managing issuance of international Sukuk.”
Earlier this year NBAD co-structured a US$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.
IAFC is the first Sharia compliant aircraft leasing fund dedicated to Airbus aircraft and seed funded by Airbus and Islamic Development Bank. The fund is looking to target GCC, MENA, CIS and Southeast Asian airline carriers.