The Bank acted
as the Sole Arranger, Structurer and joint Lead Manager/Bookrunner for the
5-year issuance
Manama, Bahrain: Bank ABC, one
of MENA’s leading international Banks, acted as the Sole Arranger, Structurer
and Joint Lead Manager (JLM) & Bookrunner for a US$600 million 5-year Sukuk
Issuance by Air Lease Corporation (ALC). This issuance marks not only the debut
Sukuk from ALC but also the first sukuk issuance by a corporate from North
America. The issuance is part of ALC’s funding strategy to diversify its
investor base and tap a new pool of liquidity.
Bank ABC, along with a number of regional
and international banks, announced the transaction on 27th February
followed by a deal roadshow covering investors in the UAE, Qatar and KSA. As a
144A/Reg S issuance listed on the London Stock Exchange, the Sukuk was open to
the global investor community. With the strength of the JLM group, strong
market appetite for Sukuks, and investment grade credit, the transaction was
3.5x oversubscribed and was priced successfully on 6th March 2023.
Commenting on
the landmark transaction, Christopher Wilmot, Group Head of Treasury &
Financial Markets, Bank ABC: “We are proud to have played a
leading role in this historic corporate Sukuk issuance from the US. With ALC’s
robust aviation business and solid financial position, the issuance presented
an attractive Shari’a compliant investment opportunity for regional investors.
We are committed to opening this avenue of funding for our clients in our core
US market, enabling them to access a wider pool of liquidity. I would like to
thank ALC, and all participating banks, for their trust and confidence in Bank
ABC’s Debt Capital Markets & Islamic Finance services and all the teams
involved from across the Group in making this transaction a remarkable
success.”
ALC is the second largest
aircraft leasing company globally, with total platform scale of over $55
billion across its owned, managed and on order fleet. The company is
principally engaged in buying commercial aircraft (from Airbus and Boeing and
is considered their largest client) and leasing them to airline businesses in
every major geographical region, spanning approximately 115 airlines across 61
countries. In addition, the company supplies fleet management and remarketing
services to third parties.
“We are grateful to the team at
Bank ABC for their thought leadership and expertise in executing the first
Sukuk offering from a North American corporate borrower. The transaction is a
testament to ALC’s commitment to diversification of funds as well as the strong
liquidity in the Middle East. We look forward to expanding our funding
footprint in this region and believe this transaction is a key step in
highlighting the opportunities that exist in this market. The quality and depth
of demand for the transaction exceeded our expectations and we are thankful to
our banking partners, investors, and advisors for their support in achieving
this outcome.” Greg Willis, Executive Vice President & Chief Financial
Officer, Air Lease Corporation.
Bank ABC is a leading global
banking player and provides innovative wholesale financial products and
services, including Capital Markets, Transaction Banking, Specialized Finance,
Islamic Finance, Real Estate Finance and Financial Markets to Corporates and
Financial Institutions. It also offers retail banking services through its
extensive network of retail branches in Jordan, Egypt, Tunisia, and Algeria and
through its digital, mobile-only ila Bank in Bahrain.
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Christopher Wilmot |
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Greg Willis |
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