United Arab Emirates (U.A.E.), state owned carrier Sri Lankan Airlines has secured Islamic structured financial facility for a value of US$ 175 from a consortium U.A.E. based banks.
Abu Dhabi Islamic Bank, Al Hilal Bank, Mashreq’s Islamic Banking Division, Mashreq Al Islami, Noor Islamic Bank and United Bank Limited arranged the facility as mandated lead arrangers and bookrunners. The facility structure is as per Islamic sharia’a principles and was subscribed in US$ and U.A.E. dirhams (AED).
Mashreq Al Islami acted as the coordinating bank. The facility is repayable over a period of four years from assigned ring-fenced cash flows with suitable credit enhancements.
John Iossifidis, Mashreq Al Islami's head of international banking group, said, “The successful closure of this transaction is clear evidence of the growing acceptance of Sri Lanka credit story in international markets.”
Iossifidis emphasized the growing importance of Sri Lanka in the region and how Mashreq, in conjunction with its other key partner banks, have been instrumental in closing the facility despite the difficult global liquidity conditions continuing.
“Sri Lanka is a key strategic market for Mashreq and we are committed to working alongside our core relationship clients, to explore different forms of capital raising”.
SriLankan Airlines, the national carrier of Sri Lanka, currently operates a fleet of 19 aircraft covering 60 destinations worldwide.
