Kuwait-based ALAFCO Aviation Lease and Finance Company has signed a financing agreement worth $75 million to strengthen its operations as the travel industry looks to rebound from the global coronavirus pandemic.
The Islamic Corporation for the Development of the Private Sector (ICD) and ALAFCO signed the four-year syndicated secured financing agreement with $50 million from ICD making it the lead financier in the deal.
The agreement comes after the aviation sector has been one of the hardest hit sectors during the pandemic.
Ayman Sejiny, CEO of ICD, said: “We are very pleased to support ALAFCO in its efforts as a leading player in the aircraft leasing market following Islamic finance principles.”
Adel Ahmad Albanwan, CEO of ALAFCO said: “The agreement demonstrates the confidence ICD has in ALAFCO’s business model, its long-term sustainability and the outlook of the aviation sector.”
ALAFCO is an aircraft leasing company based in Kuwait and is listed on the Kuwait Stock Exchange. It has major institutional shareholders including Kuwait Finance House (KFH), Gulf Investment Corporation (GIC) and Kuwait Airways Corporation (KAC).
Its portfolio consists of 79 Airbus and Boeing aircraft, leased to 23 airlines in 15 countries across Americas, Africa, Asia-Pacific, Europe, and the Middle East.