Others Malaysian Airline System Berhad (“MAS” or the “Company”) - Islamic financing facilities of up

Type	Announcement
Subject	OTHERS
Description	MALAYSIAN AIRLINE SYSTEM BERHAD ("MAS" OR THE "COMPANY") - ISLAMIC FINANCING FACILITIES OF UP TO RM5.311 BILLION

1. INTRODUCTION

Our Board of Directors wish to announce that we had on 19 November 2012 executed a Master Facility Agreement with Turus Pesawat Sdn Bhd ("Turus Pesawat") in respect of a Bai' Bithaman Ajil Islamic financing arrangement of up to RM5.311 billion ("Financing Facilities").

Turus Pesawat is incorporated in Malaysia as a special purpose company, wholly-owned by the Ministry of Finance, Inc, in order to provide the Financing Facilities.

The Financing Facilities are to be utilised by us to finance the purchase of eight (8) aircraft comprising six (6) Airbus A380-800, one (1) Airbus A330-200F and one (1) Airbus A330-300 ("Aircraft") and other expenses in relation to the purchase thereof.

The salient terms of the Financing Facilities are set out in Section 2 below.

2. SALIENT TERMS OF THE FINANCING FACILITIES

The relevant salient terms of the Financing Facilities are as follows:

Facility :

Bai' Bithaman Ajil Facility up to a maximum aggregate amount of RM5.311 billion only.

Purpose :

The Financing Facilities of RM5.311 billion shall be utilised by us to finance the purchase of the Aircraft and other expenses in relation to the purchase thereof including but not limited to the following:

(a) pre-delivery progressive payments including advances paid by us for the purchase of the Aircraft;

(b) balance purchase price of the Aircraft (if any) including buyer furnished equipment;

(c) to redeem any bridging facility or credit lines undertaken by us in relation to the purchase of the Aircraft; and

(d) such other costs as may be determined by Turus Pesawat

Tenure :

The tenure of the Financing Facilities shall be for a period of up to twenty (20) years from the date of each disbursement under the Financing Facilities.

Security:

The Financing Facilities are secured against the Aircraft.

3. EFFECTS OF THE FINANCING FACILITIES

The Financing Facilities will not have any effect on our issued and paid-up share capital, net assets and net assets per share.