Quantum Investment Bank and Palma Capital launch Islamic aircraft leasing fund with Airbus

Quantum Investment Bank and Palma Capital anounced (24-Jun-2014) they have been retained as the exclusive placement agents for the launch of a shariah compliant aircraft leasing fund (ALIF Fund) to be managed by the International Airfinance Corporation (IAFC) with Airbus and the Islamic Development Bank (IDB) as anchor investors and strategic partners. The new aircraft leasing fund was launched on 23-Jun-2014. The fund has a targeted size of USD5 billion from a combination of equity and debt. It willl focus exclusively on Airbus aircraft. The objective of the ALIF Fund is to achieve a risk adjusted medium to long-term capital appreciation while generating a quarterly cash dividend to investors. The Fund will operate according to shariah principles and will purchase brand new and second hand Airbus aircraft to be leased to airline companies in the Gulf Cooperation Council (GCC) and Organization of Islamic Conference (OIC) member countries. [more - original PR]

Airbus Group: "Airbus has been very successful in growing its market share in the MENA region over the last two decades and this innovative financing initiative will enable us to satisfy our customers' financing needs even more effectively," Habib Fekih, president for MENA & Africa and ALIF Fund chairman. SourceL Airbus Group, 24-Jun-2014.

Palma Capital/IAFC: "The establishment of ALIF Fund was derived from the strong interest of both investors and financiers for sharia compliant instruments that generate attractive and stable returns stemming from the ownership of commercial aircraft assets over an extended period of time. This is further reinforced by the inherently significant, growing need and demand for aircraft by airliners in the GCC and OIC member states," Moulay Omar Alaoui, chairman of Palma Capital and president & CEO of IAFC. Source: Palma Capital/IAFC, 24-Jun-2014.