Mohamed Hassan, chairperson of CIAF Leasing, announced that the special arrangements for the issuance of Sukuk (securities) to finance the purchase of three Embraer E190 aircraft were finalised.
The company arranged with the Financial Regulatory Authority to navigate the process, ADIB Securities for financial consultancy, and Al Tamimi & Company as its legal advisor. The issuance is expected to reach $50m.
The company plans to launch its Sukuk offering prospectus in December 2019.
The company has concluded negotiations with the Brazilian company Embraer to buy three new aircrafts from its last production line of model E190 for $75m. This aircraft has the following characteristics:
Passenger capacity of 110 seats including European EASA modifications, which reinforces the company’s orientation to open new markets, especially in the emerging airlines in Africa on comprehensive lease system (ACMI) or (DRY LEASE) for companies in Europe.
The company has obtained a license to operate charter aircrafts and is seeking to expand in the African market in the coming period, especially that the project will benefit small start-up airlines to launch their flights to different destinations via a comprehensive leasing system where an airline (the lessor) provides aircraft, crew, maintenance, and insurance (ACMI).
This system is ideal for start-ups, where they only cover fuel costs. This enables emerging companies to make revenues from the start without high investment costs.