MAS funds eight aircraft using Islamic finance

Victoria
By Victoria November 22, 2012 19:53

MAS funds eight aircraft using Islamic finance

Malaysian Airline System (MAS) has entered into a master facility for a Bai’ Bithaman Ajil Islamic financing arrangement with Turus Pesawat Sdn Bhd, a special purpose company owned by the Ministry of Finance, to financing facilities of up to RM5.3 billion to fund the purchase of six A380-800s, one A330- 200F and one A330-300.
Set out in a filing with the exchange, the airline states that other expenses covered by the facility include pre-delivery payments including advances paid by MAS for the purchase of the aircraft, the balance purchase price of the aircraft (if any) including buyer furnished equipment, redemption of any bridging facility or credit lines undertaken in relation to the purchases; and other costs as may be determined by Turus Pesawat.
MAS also plans to launch a RM2.5 billion sukuk to provide working capital, but in the meantime is has received a bridging loan of RM1 billion from a local commercial bank until it can draw down on the first tranche of the sukuk.

Victoria
By Victoria November 22, 2012 19:53
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