KUALA LUMPUR, Nov 19 – BNP Paribas and Natixis Transport Finance as Lead Arrangers, Global Coordinators and Book Runners have closed for AirAsia, a US$336 million Syariah-compliant French Single Investor Ijarah, for the financing of up to eight Airbus 320-200 aircraft.
This is the first Islamic French-Malaysian optimised transaction of this kind, BNP Paribas, Natixis and AirAsia said in a joint statement.
They said above a cost efficient 100 per cent financing structure, the Islamic Ijarah ensures that AirAsias capital and investment allowances are preserved.
Purchase of each aircraft is through a mix of Euro denominated equity, a US dollar-denominated Investment Agency Agreement - Wakala from Islamic Financiers and a US dollar-denominated Wakala granted by AirAsia and refinanced by a Ringgit-denominated Commodity - Murabaha.
They said Landesbank Hessen-Thuringen Girozentrale, Irish Branch (Helaba) is the Mandated Lead Arranger, RHB Islamic Bank Bhd Arranger, and Bank Rakyat as Mandated Lead Arranger of the Commodity Murabaha.
Banks were advised by Norton Rose together with Wong and Partners in Malaysia and AirAsia by Freshfields Bruckhaus Deringer, they said.
Dominique Jaillon, BNP Paribas, Director of Optimisation and Structured Leasing (Asia Pacific), said: “This landmark financing has been conducted in Malaysia due to a supportive and facilitative environment conducive to innovation.
“The deal demonstrates the banks strong market position and expertise in innovative financial solutions for our Islamic clients worldwide as well as commitment to provide AirAsia with diverse and efficient sources of funding.”
Datuk Kamarudin Meranun, deputy group chief executive officer of AirAsia said the unique structure has allowed the airline to continue to enjoy overall competitive financing terms for its aircraft purchases, especially under current market situation.
It also has encouraged innovation and creativity in structuring Islamic products and promoted the development of aircraft financing in Malaysia with the participation of RHB Islamic and Bank Rakyat, he said. – Bernama
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