SriLankan Airlines gets $ 175 m Islamic loan from Gulf banks

DUBAI (Reuters): SriLankan Airlines signed a $ 175 million sharia-compliant loan, a statement from one of the arranging banks said on Sunday, the first time the carrier has borrowed from the international syndicated loan market.

The State-owned airline completed the four-year facility with Abu Dhabi Islamic Bank, Abu Dhabi’s Al Hilal Bank, Mashreqbank, Dubai’s Noor Islamic Bank and United Bank Limited, a statement from Mashreq’s Islamic arm said.

The loan was provided in dollars and UAE dirhams and will be repayable from ring-fenced cash flows, the statement added.

“The successful closure of this transaction is clear evidence of the growing acceptance of the Sri Lanka credit story in international markets,” said John Iossifidis, Head of International Banking Group at Mashreq.

SriLankan Airlines has 19 aircraft and flies to 60 destinations, according to the statement.