National Bank of Abu Dhabi (NBAD) and Arab Banking Corporation have been named as lead arrangers for a $400 million Sharia-compliant loan to purchase five aircraft to be leased by Kuwait Airways.
International AirFinance Corporation (IAFC) said the eight-year loan would be used to purchase five A330-200 aircraft.
A period to market the murabaha-structured loan to other banks is expected to close at the end of May. A murabaha is a cost-plus-profit arrangement which is one of the most popular formats for structuring Islamic loans.
IAFC is the first Sharia-compliant aircraft leasing fund dedicated to Airbus aircraft and is seed funded by Airbus and Islamic Development Bank. This is their first syndicated loan.
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