Airbus and IDB back Islamic aircraft leasing fund

June 26 (Reuters) Airbus Group and the Jeddah based Islamic Development Bank (IDB) are seeding a sharia compliant canada goose coats aircraft leasing fund to cater canada goose uk black friday to growing demand Canada Goose Jackets for canada goose uk shop commercial financing from airlines in the Middle East, Asia and Africa.

The fund, uk canada goose which will exclusively finance Airbus aircraft, has a target size of $5 Canada Goose Outlet billion and could help boost the European planemaker edge against rival Boeing in the fast growing commercial airline market in the Gulf region.

The European planemaker developed the fund together with Dubai Canada Goose Online based Quantum cheap canada goose uk Investment Bank and Palma Capital, and will seed it together with the IDB. Cayman based International Airfinance Corporation will serve as fund manager.

Gulf airlines such as Etihad Airways, Emirates and Qatar Airways have transformed canada goose black friday sale the aviation industry over the last decade through aggressive expansion, while cheap Canada Goose Islamic finance is a growing uk canada goose outlet element to win business in the region.

main Canada Goose Coats On Sale goal is to canada goose store attract new sources of capital to our industry for the benefit buy canada goose jacket cheap of our customers. Our market has become a lot more international, in particular in canada goose clearance sale the financial market, Yann Ballet, head of project and structured finance at canada goose coats on sale Airbus Group, told Reuters.

With an order book that is heavily weighted Canada Goose online towards Middle East and canada goose uk outlet Asia, Airbus was keen to develop an Islamic finance solution to cater to that part of the world, he added.

came very quickly to the conclusion that Asset based finance is very attractive under Islamic finance principles.

The fund will use a 4 to 1 mix of sharia compliant debt and equity, with the first tranche expected to close by the end of September, Ballet said, adding the fund already had existing investor commitments and several transactions in the pipeline.

Use of lease financing has expanded among commercial airlines. Large carriers, which tend to secure lower cheap Canada Goose Jackets lease rates, reduce the risk of canada goose clearance a fall in the value of their fleets, while smaller rivals gain aircraft they could not buy outright.

Commercial aircraft financing canadian goose jacket surpassed the $100 billion mark for the first time last year and this figure is set to be higher this year, a report by consultancy Flightglobal said.

Lease financing currently represent canada goose factory sale a third of aircraft deliveries and this could reach half of all new aircraft deliveries by the middle of the next decade.

Gulf based carriers are prominent in Airbus order book, but Canada Goose Parka the fund geographical mandate covers all of the IDB 56 member countries, which could see it extending financing well beyond the region.

In May, Indonesian airline Garuda Indonesia secured $100 million in financing from a unit of Malaysia Maybank to fund its operations and expansion.

In 2012, Sri Lankan completed a $175 million sharia compliant Canada Goose sale loan facility canada goose from a syndicate of five Gulf based Islamic buy canada goose jacket banks. (Editing by Kim Coghill).