Kuwait Airways has taken delivery of the first Airbus A330-200 aircraft under a leasing arrangement with the International Air Finance Corporation (IAFC). The delivery of the first aircraft, facilitated by Warba Bank, is a part of an inaugural transaction for IAFC of five Airbus A330-200s to be leased to Kuwait Airways.
IAFC is the fund manager of a $5 billion Aircraft Leasing Islamic Fund (ALIF) that was established by in June 2014 with anchor investors including Airbus and the Islamic Development Bank. ALIF is exclusively dedicated to Airbus aircraft. Warba Bank is a lead investor in the ALIF Fund.
Shaheen Hamad Al Ghanem, Deputy Chief Executive Officer, Investment & Treasury at Warba Bank, said: “Warba Bank has established an outstanding reputation for innovation and excellence in the structuring of innovative Shari’ah-compliant financial solutions for major corporate entities in Islamic financial and investment sectors. This is demonstrated through its contribution to the largest specialist Shari’ah-compliant aircraft leasing fund, in international partnership with Airbus industries and Islamic Development Bank. This is also the first time Airbus enters the Islamic financing sector, due to its promising future and ongoing growth.
“Warba Bank’s contribution to this investment alongside international partners reflects the great trust in Warba Bank and its ability to providing innovative Islamic solutions. Given the rapid growth of the Middle East aviation sector, we have targeted aircraft financing as a key revenue stream in years ahead. Out involvement with IAFC not only gives us access to this dynamic segment of the market, but also allows Warba Bank to directly support Kuwait Airways as it embarks on the modernisation of its fleet.”