Bahrain-based Islamic Investment financial institution, Ibdar Bank announced the successful distribution of a 10% dividend for the year ended 2014 to investors in Aircraft Leasing Investment Company.
Basel Al-Hag-Issa, Chief Executive Officer of Ibdar Bank, said: "The dividend payment by the Aircraft Leasing Investment Company demonstrates Ibdar Bank’s ability to deliver superior performance and continue to add value to its esteemed clients, despite today’s challenging market conditions."
The Aircraft Leasing Investment Company was established in January 2011 and has been structured around a transaction concluded with Emirates Airlines, one of the world’s leading carriers. It consisted of the acquisition of a Boeing 777-200ER aircraft from the airline and an agreement whereby it has been leased back to Emirates. The deal was undertaken in partnership with Novus Aviation and Muzun Partner Ltd., while the Financing for this was provided by the London branch of DVB Bank, one of the largest transportation finance banks in the world, with Trowers & Hamlins acting as the legal advisors and Avitas having conducted the valuation and inspection of the aircraft.
"This investment continues to generate healthy returns for the Bank and our co-investors," Al-Hag-Issa said highlighting that the global aviation industry has shown consistent long-term growth despite the various challenges in the global financial markets, with the Middle East region representing one of the fastest growing travel hubs in the world today.
"We continue to look for opportunities in this sector and others that will enable us to acquire assets that are both income-yielding and provide for medium to long-term upside potential," Al-Hag-Issa said.
This was its first aircraft leasing transaction for Ibdar Bank in the aviation sector. The second was concluded with the Ethiopian Airline in 2014 whereby the Bank acquired four brand new Bombardier Q400 airplanes and leased it to the airline for a fixed 12 year-term. The deal was structured under a joint venture with Dubai-based Palma Holding. The Bank also participated in a syndicated financing facility of USD five million for the Bahrain-based carrier Gulf Air in 2009, which has been fully repaid.
Al-Hag-Issa pointed that Ibdar is focused on originating new and innovative transactions that allow the Bank and its partners to excel. "We have a strong pipeline of opportunities in other sectors where equally we intend to build on growth in consumer patterns across our markets of focus and in industries where we have the experience and know-how to deliver solid returns," he said.