Kuwait's Jazeera secures new $70.5m debt facility

Aviation firm announces agreemennt with Ahli United Bank as part of its ongoing debt restructuring plans
By Andy Sambidge
Fri 27 Jun 2014 12:55 AM

Kuwait-based Jazeera Airways Group has announced that it has secured a $70.5 million debt facility through Ahli United Bank (AUB) as part of the Group's ongoing debt restructuring plans.

The financing scheme has a three-year term with a roll-over facility, the aviation firm said in a statement.

Jazeera Airways Group chairman Marwan Boodai said: "This facility, which will help us fund our future plans, is significant for both its timing, as it comes at time when debt markets are favourable, and for being secured through a leading bank that is based in our home market, thus further boosting the value Jazeera Airways Group brings to our market."

AUB Kuwait general manager Corporate Banking, Hisham Zaghloul added: "We take pride in having collaborated with Jazeera Airways in serving their future business plans."

Earlier this month, Jazeera Airways Group announced that it had secured a $18.3 million aircraft refinancing facility through Arab Banking Corporation (ABC).

In April, Jazeera Airways said it is in the final stages of launching a dedicated gates facility at Kuwait International Airport.

The airline said that its investment in Kuwait Airport will lift the airport's gates capacity by 30 percent and will offer a "better, easier, and more streamlined boarding experience for customers".

The move comes as the carrier announced that its first quarter net profit fell 41.8 percent to KD2.1 million compared to the same period last year. Revenue at KD13.8 million fell by 6.1 percent.

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