ALAFCO Closes $300 Million Murabaha Facility

21.09.2017 Aviation
ALAFCO Closes $300 Million Murabaha Facility

ALAFCO Closes $300 Million Murabaha Facility

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Kuwait’s Aviation Lease and Finance Company (ALAFCO) has successfully closed an agreement for a three-year syndicated Murabaha facility for $300 million.

The transaction has been advised by KFH Capital Investment Company with participation from Kuwait-based Warba Bank, Boubyan Bank, Kuwait International Bank and Bahrain-based ABC Islamic Bank.

ALAFCO’s main activities include aircraft operating leases, sale and leasebacks and aircraft lease management.

Its portfolio consists of 65 Airbus and Boeing aircraft - comprising A320, B737 and B777 aircraft - leased to 22 airlines in 14 countries across the world, said the statement.

A major regional player, ALAFCO invests in new technology aircraft and has a firm order of 113 aircraft including 73 A320neo, 10 A321neo, 10 A350-900XWB, and 20 B737max 8 aircraft.

On 29 June 2017, Vice Chairman of the Board and Chief Executive Officer of ALAFCO, Ahmad A. Alzabin (photo), announced that the company recorded a net profit of KD 10.8 million (US$ 35.4 million) for the first half of the financial year ending 30th September 2017 - a 78% increase from the same period of the previous financial year.

Headquartered in Kuwait, ALAFCO was founded in 1992 by Kuwait Airways Corporation (KAC) and acquired by Kuwait Finance House (KFH) in 1999. ALAFCO’s registration was changed from Bermuda to Kuwait and it was converted to a Sharia compliant aircraft leasing company in 2000. ALAFCO's main activities are: aircraft operating leases, sale and leaseback of aircraft and aircraft lease management.

In 2006, ALAFCO was listed on the Kuwait Stock Exchange. Today, 46% of ALAFCO is owned by KFH, 14% is owned by Gulf Investment Corporation (GIC), 10% is owned by Kuwait Airways Corporation (KAC) and the remainder is held by private investors.

With its rising portfolio, substantial new aircraft order, and a highly talented experienced team of professionals, ALAFCO is well positioned to meet the needs and demands of airlines worldwide.

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