Page 35 - ICD AR21 EN

3.4 SUPPORTING A LEADING PLAYER IN THE AIRCRAFT LEASING MARKET
Amidst a challenging backdrop, ICD, in collaboration with Kuwait Finance House Capital as the lead arranger, joined a four-year USD 75 million syndicated financing based on commodity Murabaha financing in favour of ALAFCO Aviation Lease and Finance Company K.S.C.P. (“ALAFCO”) and became the lead financier of this transaction. ICD participation in the syndication totalled USD 50 million.
Listed on the Kuwait Stock Exchange and operating according to Shari’ah principles, ALAFCO is a leading aircraft leasing company based in Kuwait. ALAFCO’s major institutional shareholders include Kuwait Finance House, Gulf Investment Corporation and Kuwait Airways Corporation.
ALAFCO’s fleet consists of 79 Airbus and Boeing aircrafts, leased to 23 airlines in 15 countries across the Americas, Africa, Asia-Pacific, Europe, and the Middle East. ALAFCO’s remaining order book comprises
68 new technology aircraft from Airbus and Boeing. Deliveries are scheduled to take place between
2022 and 2028.
While the aviation sector plays a crucial role in global connectivity and mobility as well as economic growth, it has been one of the hardest hit sectors during the pandemic, with airlines experiencing overwhelming disruption and a shocking downturn. It is envisaged that ICD’s financing will strengthen the operations of ALAFCO and support its business needs as economic recovery and global travel picks up. The financing facility will enable ALAFCO to be better prepared to accommodate the expected growing international passenger demand due to significant easing of restrictive measures and restored confidence.
OUR OPERATIONS, ACTIVITIES AND PERFORMANCE: 2021 HIGHLIGHTS
ICD’s financing will
strengthen the operations of ALAFCO
and support its business needs as economic recovery and global travel picks up.
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