two hours ago
Watan Al-Youm: Bank ABC, one of the leading international banks in the Middle East and North Africa region, acted as the exclusive financier, arranger, co-manager and agent for a $600 million Islamic Sukuk issuance deal with a maturity of 5 years for Air Lease Corporation (ALC). This issuance represents the first sukuk issuance from ALC, which is the first of its kind for a North American company. This issuance comes as part of the Corporation’s financing strategy to diversify its investor base and benefit from a new pool of liquidity.
Bank ABC, along with a number of regional and international banks, announced the deal on February 27, and the announcement was followed by a promotional campaign for the deal that included investors from the United Arab Emirates, Qatar and Saudi Arabia. The Sukuk is listed under “144A/Reg S” on the London Stock Exchange and is available for trading to the global investor community. As a result of the strength of the group of joint banks and the high demand for investment in the sukuk, in addition to the good credit rating of the investment, the subscription was covered by more than 3.5 times above the subscription amount, and the sukuk was successfully priced on Monday, March 6, 2023.
Commenting on this historic transaction, Mr. Christopher Wilmette, Head of Treasury and Capital Markets Group at Bank ABC, said: “We are proud to have played a major role in this historic sukuk issuance in the US market. The issuance represents a favorable investment opportunity, compliant with Islamic law, for regional investors, as a result of the solidity of the aviation business and the strong financial position of ALC. We are committed to opening the way for our clients in the US markets to obtain this type of financing and giving them access to wider liquidity pools. I would like to thank ALC and all the participating banks for their confidence in the Capital Markets, Debt and Islamic Finance Services team of Bank ABC, and all the participating teams across the group for making this deal an unparalleled success.”
ALC is the second largest aircraft leasing company in the world, with a total platform size of more than $55 billion across its owned, managed and on-demand fleet. The company is primarily engaged in the purchase and lease of commercial aircraft (Airbus and Boeing as their largest customer) to airlines in all major geographies, covering approximately 115 airlines in 61 countries. In addition, the company provides fleet management and remarketing services to third parties.
For his part, Mr. Greg Willis, Executive Vice President and Chief Financial Officer of ALC, said: “We are grateful to the Bank ABC team for their thought leadership and expertise in executing the first North American corporate sukuk issuance. This transaction is testament to ALC’s commitment to diversifying funding sources and strong liquidity in the Middle East region. We look forward to expanding our financing footprint in the region as we believe this transaction is a major step in highlighting the opportunities that exist in these markets. The quality and volume of demand for the transaction exceeded our expectations and we are grateful to our banking partners, investors and advisors for their support in achieving this outcome.”
Bank ABC is a leading bank in the region, offering its clients an innovative range of financial products and services that include wholesale corporate banking, capital markets, transaction banking, customized finance, Islamic finance and real estate finance for corporate and financial institutions. The bank also provides retail banking services through its network of affiliated banks in Jordan, Egypt, Tunisia and Algeria, and through “ila” bank available on smart phones in Bahrain and Jordan.
