IslamicFinance.de

Saudi Arabian Airlines will take delivery of 50 aircraft from Airbus in the largest aviation deal to be secured via Islamic financing. Airbus announced the deal at the Paris Airshow earlier this month, which includes 30 A320neo planes and 20 A330-300 Regional aircraft worth around $8.2 billion based on list prices. Dubai-based International Airfinance Corporation (IAFC), an Airbus-backed sharia-compliant aircraft leasing fund, will buy the aircraft and lease them to Saudi Arabian Airlines, it said in a statement. IAFC, which exclusively finances Airbus aircraft for clients in the Middle East, Asia and Africa, was launched in June last year with seed capital from Airbus and the Jeddah-based Islamic Development Bank. The fund appointed Dubai-based Palma Capital and Quantum Investment Bank as arrangers to complete the deal, which consists of both equity and debt financing.

Bahrain-based Islamic investment house Tharawat said it plans to raise USD 100 million by year-end for a sukuk fund it recently launched to focus on bargains on the secondary market.

Tharawat was established in July 2008 with a paid-up capital of $33 million.

Moody's Investors Service said on Monday the Dubai's government's USD 20 bn 5-year, 4 % bond programme could support debt ratings of Dubai companies that were placed under review for a downgrade earlier this month. If there are no restrictions on how Dubai uses bond proceeds this could support Moody's ratings of Emaar, DP World, DIFC Investments, Dubai Holding Commercial Operations Group, Dubai Electricity and Water Authority and the Jebel Ali Free Zone. Moody's had said it could lower its debt and Islamic bond, or sukuk, ratings for the six firms, all linked to the Dubai government, by as much as two notches each. The review is due shortly.