By Staff writer
Islamic investment bank announces 12-year agreement for four planes which will be leased to Ethiopian Airlines
Bahrain-based Islamic Investment bank, Ibdar Bank, has announced a 12-year agreement for acquiring four new Bombardier Q400 aircrafts and leasing them to Ethiopian Airlines.
The deal that was structured under a joint venture with Dubai-based operating lessor Palma Holding, marked the first ever Sharia-compliant transaction in Africa's aviation sector.
Valued at $100 million, Ibdar Bank contributed as investor with $22 million, while an amount of $78 million was secured through a funding agreement with Canada’s Export Credit Agency, the export finance agency of Canada.
The agreement includes options for an additional four Q400 NextGen aircraft, which Ibdar Bank intends to exercise in the near future, a statement said.
The announcement was made during a press conference by Basel Al-Hag-Issa, CEO of Ibdar Bank.