Abu Dhabi Global Market (ADGM), the leading international financial centre (IFC) of Abu Dhabi has facilitated the transaction of a 12-year Sukuk issued by Natixis and Noor Bank. The transaction marks a milestone for ADGM’s aviation finance and leasing sector. It is the first instance where an ADGM structure has been used specifically to hold aircraft assets for issuing Sharia compliant bonds.
The Sukuk transaction demonstrates the evolving, innovative measures ADGM has taken to cater to and meet client needs. It has integrated the benefits of an internationally recognized legal and regulatory framework with Islamic financing requirements. The deal provides access to Islamic investment opportunities with the transparency of common law regulations and the integrity of an International Financial Centre.
Natixis designed and arranged the Sukuk for this new transaction. ADGM, being the only IFC in the region to directly apply English Common Law via an independent modern judicial system that caters to all aspects of business needs. Its regulatory regime also includes the enactment of the Cape Town Convention and Aircraft Protocol 2001, providing investors with familiarity and confidence in conducting transactions.
Abu Dhabi, with a central geographic position, provides an excellent base for aviation finance and leasing, located in the high-potential Middle East and with close ties to other growth markets such as India and Africa. It is home to several of the world’s largest sovereign wealth funds, presenting an abundance of regional investor capital opportunities coupled with ADGM’s thriving ecosystem of aviation professionals with extensive expertise in aviation finance.
“We were delighted to work with ADGM on this transaction, which allowed us to use our aviation and Islamic finance expertise to offer Islamic investors diversification into an otherwise unreachable asset class and open new sources of funding for aviation borrowers. We look forward to strengthening our cooperation with ADGM as it continues to expand its role as an aviation financing hub,” said Simon Eedle, Regional Head of Natixis Corporate & Investment Banking, Middle East.
The Middle East is forecasted to be one of the fastest growing aviation regions over the next 20 years. ADGM solutions and long-term sector strategy aim to position the IFC and Abu Dhabi as an international aviation finance hub that has integrated innovative tools and structures to deliver bespoke solutions for both Islamic and Conventional transactions.
Source CPI Financial