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ABC and CCIB to arrange $160m term debt facility

ABU DHABI — Bahrain-based Arab Banking Corporation (ABC) and Calyon Corporate and Investment Bank (CCIB) have been mandated jointly to arrange and underwrite a $160 million term debt facility for Kuwait's Alafco Aviation Lease and Finance Company.

Syndication has been launched for the 12-year Term Loan Facility for Alafco. The purpose of the facility is to part-finance the acquisition of five new boeing B737-800 aircraft leased to and operated by Turkish Airlines Inc. Alafco was first launched in 1992 as a subsidiary venture of Kuwait Airways Corporation.

The deal is likely to be concluded in two weeks. In 1999, Kuwait Finance House (KFH) acquired a controlling stake of the company. ALAFCO's main shareholders are Kuwait Finance House, which has 53 per cent share, and Kuwait Airways 11 per cent.

Meanwhile, Arab Banking Corporation has closed $67 million Syndicated Term Debt Finance Facility, for a 10.5 year term loan facility for IceSing ehf.

The facility is used to part finance the acquisition and lease to Singapore Airlines Cargo (SIA Cargo) of a Boeing B747F aircraft.

Launched on selective basis and received strong support from regional and international bank market with the facility being oversubscribed by 30 per cent.

The Arab Banking Corporation (ABC) was the Mandated Lead Arranger, Underwriter and Bookrunner while lead arrangers included Abu Dhabi-based First Gulf Bank, Arab Bank Plc. Singapore Branch and Norddeutsche Landesbank Girozentrale.