African gets its first Sharia complying aviation lease deal
The first ever Sharia-compliant transaction in Africa's aviation sector has been completed between a Bahrain investment bank and Ethiopian Airlines.
Bahrain bank Ibdar, structured the deal through under a joint venture with Dubai-based operating lessor Palma Holding . It features a 12-year agreement to acquire four new Bombardier Q400 aircrafts and leasing them to Ethiopian Airlines.
Valued at $100 million, Ibdar Bank contributed as investor with $22 million, while an amount of $78 million was secured through a funding agreement with Canada’s Export Credit Agency, the export finance agency of Canada.
The agreement includes options for an additional four Q400 NextGen aircraft, which Ibdar Bank intends to exercise in the near future, a statement said.