Ibdar Bank is set to distribute a 10 per cent dividend for last year to investors in Aircraft Leasing Investment Company.

The Bahrain-based Islamic investment bank's chief executive Basel Al Hag Issa said the dividend payment demonstrated Ibdar Bank's superior performance despite the challenging market conditions, reported the Gulf Daily News (GDN), our sister publication.

The Aircraft Leasing Investment Company was established in January 2011 and has been structured around a transaction with Emirates Airlines.

It consisted of the acquisition of a Boeing 777-200ER aircraft from the airline and an agreement whereby it was leased back to Emirates.

The deal was undertaken in partnership with Novus Aviation and Muzun Partner, while the financing was provided by the London branch of DVB Bank with Trowers and Hamlins acting as the legal advisers. Avitas conducted the valuation and inspection of the aircraft.

"The investment continues to generate healthy returns for the bank and co-investors," Al Hag Issa said.

According to him, the global aviation industry has shown consistent long-term growth despite challenges in the global financial markets, with the Middle East region representing one of the fastest growing travel hubs in the world today.

"We continue to look for opportunities in this sector and others that will enable us to acquire assets that are both income-yielding and provide for medium to long-term upside potential," he added.

This was its first aircraft leasing transaction for Ibdar Bank in the aviation sector. The second was concluded with Ethiopian Airline last year whereby the bank acquired four brand new Bombardier Q400 airplanes and leased them to the airline for a fixed 12 year-term.

The deal was structured under a joint venture with Dubai-based Palma Holding.

The bank also participated in a syndicated financing facility of $5 million for Gulf Air in 2009, which has been fully repaid. - TradeArabia News Service