Kuwait's Alafco receives $670m facilities

Two financing facilities were received from national and foreign banks

  
Aviation Lease And Finance Co. (ALAFCO) Chairman Ahmad Alzabin speaks during the Reuters Middle East Investment Summit in Kuwait on November 4, 2008. REUTERS/Stephanie Mcgehee Image used for illustrative purpose.

Aviation Lease And Finance Co. (ALAFCO) Chairman Ahmad Alzabin speaks during the Reuters Middle East Investment Summit in Kuwait on November 4, 2008. REUTERS/Stephanie Mcgehee Image used for illustrative purpose.

REUTERS/Stephanie Mcgehee

Kuwait  - Alafco Aviation Lease and Finance Company secured two financing facilities from national and foreign banks, with a total value of $670 million, according to a bourse statement.

Alafco received from Kuwait Finance House (KFH) a financing facility of $150 million, with a maturity period of three months, as from 15 December, to meet the short-term funding requirements, the company said in a disclosure to Boursa Kuwait.

As a result, Alafco’s assets will increase by $150 million, with the same increase in its liabilities, the company said.

In a separate disclosure, Alafco said it received an unsecured murabaha financing facility worth $520 million, as part of a five-year financing facility agreement that was signed in June 2019.

The facility was led by Al Ahli Bank of Kuwait and HSBC Bank Middle East, which also acted as the coordinator in the transaction.

Alfaco received then $270 million as the first tranche, while the second round will total $250 million.

The company’s assets are expected to rise by $250 million through the cash and cash equivalents, with liabilities increasing by the same amount.

Source: Mubasher

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