UAE-based banks arrange financing for Sri Lankan Airlines
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Leading banks from UAE successfully arranged an Islamic structured facility for the state-owned carrier Sri Lankan Airlines. 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 AED.
Mashreq Al Islami acted as the coordinating Bank. For Sri Lankan Airlines, this financing marks their debut in the international syndicated loan market. The facility is repayable over a period of four years from assigned ring-fenced cash flows with suitable credit enhancements.
John Iossifidis, Head of International Banking Group, at Mashreq said: “The successful closure of this transaction is clear evidence of the growing acceptance of Sri Lanka credit story in international markets”.