RJ closes oversubscribed US$275m loan facility 

royal jordanian

Royal Jordanian Airlines has announced the closure of its US$275m dual conventional and Islamic secured syndicated facility. 

The syndicate comprised of seven banks based in Jordan, UAE and Qatar: Mashreq, Arab Bank plc,  Al Khalij Commercial Bank (Al Khaliji) Q.S.C, Dubai Islamic Bank, and The Commercial Bank/Qatar acting as Mandated Lead Arrangers.

In addition, Arab Jordan Investment Bank acted as Lead Arranger and Bank al-Etihad as Arranger, and Mashreq Bank was the sole book-runner for the loan.

The facility carries a tenor of five years and the proceeds of the facility will be primarily utilised to consolidate and refinance RJ’s existing debt and further support the company’s on-going strategic growth.

Chairman of Royal Jordanian board of directors Suleiman Hafez said: “Royal Jordanian has successfully secured a hybrid structured debt instrument as part of the airline’s on-going strategic capital raising program, to support its intensive turnaround and growth plans to evolve into one of the leading airlines in the Levant and Middle Eastern region.”

President / CEO of Royal Jordanian Captain Suleiman Obeidat said: “We would like to show our gratitude to Mashreq and other participating banks for the successful closure of this deal, which will support the airline’s well-studied plans to carry out network expansion and fleet modernisation, particularly that RJ will introduce more 787s to its fleet by the end of this year. Today five 787s are operating in the fleet since 2014.”

Salman Gulzar, head of corporate banking at Mashreq Qatar stated:  “The successful closure of this transaction by Mashreq in these uncertain times demonstrates the trust and confidence we and our partner banks have in supporting reputable and strong Levant based corporates in the regional and international debt market.

“Jordan has always been a strategic market for Mashreq and we remain committed to working alongside our core relationship clients like Royal Jordanian.”

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