KUALA LUMPUR: BNP Paribas and Natixis Transport Finance have closed for AirAsia Bhd a US$336mil Sharia-compliant financing for up eight Airbus 320-200 aircraft.
BNP Paribas and Natixis Transport Finance are the lead arrangers, global coordinators and book runners for the financing, according to a joint statement issued on Wednesday.
This Sharia-compliant French Single Investor Ijarah is the first Islamic French-Malaysian optimised transaction of this kind.
“Above a cost efficient 100% financing structure, the Islamic Ijarah ensures that AirAsia’s 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,” the statement said.
AirAsia deputy group chief executive officer Datuk Kamarudin Meranum said the unique financing structure had enabled the low-cost carrier to continue to enjoy overall competitive financing terms for its aircraft purchases, especially under current market situation.
He added the structure had also encouraged the innovation and creativity in structuring Islamic products and promote the development of aircraft financing in Malaysia with the participation of RHB Islamic and Bank Rakyat.