KUWAIT CITY, Jan 23: Alafco Aviation Lease and Finance Company on Wednesday announced the successful closure of a $600 million five-year unsecured Murabaha facility as it received the last tranche of $80 million, reports Islamic Finance.
The payment marked the last phase of the Murabaha facility, which was signed on 24 June 2019 with a value of $470 million at that time, according to a bourse statement.
The first tranche, which was received in June 2019, totalled $270 million, while the second tranche, obtained last December, amounted to $250 million. Furthermore, the transaction will increase the company’s assets through an $80 million (KD 24.3 million) increase in cash and cash equivalents, and an equal increase in liabilities.
In this regard, Alafco’s CEO, Adel Ahmed Al Banwan, stated that the Murabaha deal will cover the operating and capital costs resulting from the company’s boosted operational performance and geographical expansion.