IslamicFinance.de

An Airbus-backed, sharia-compliant aircraft leasing fund has signed its maiden deal to buy five A330-200 planes with an option for four more. Based on list prices, the deal for the nine planes is worth approximately $2 billion, according to Dubai-based International Airfinance Corporation (IAFC), which manages the fund. The fund, which exclusively finances Airbus aircraft for clients in the Middle East, Asia and Africa, was launched in June with seed capital from Airbus and the Jeddah-based Islamic Development Bank. The fund has a target size of $5 billion and uses a 4-to-1 mix of sharia-compliant debt and equity.