Abu Dhabi-Mubasher: The National Bank of Abu Dhabi (NBAD), along with Arab Banking Corporation, was mandated by the International AirFinance Corporation (IAFC) as underwriter, bookrunner and lead arranger on a $400 million Murabaha loan.

The deal, which is IAFC's inaugural syndicated loan, will finance the provision of five A330-200 aircraft on an operating lease to Kuwait Airways, NBAD said in a statement.

The facility comprises an eight-year-term loan secured on the five aircraft, and is currently in syndication with an expected closing at the end of May.

The borrower is a 100%-owned subsidiary of a fund managed by IAFC.

"The aviation industry is one of the fastest-growing industries in the West-East corridor and one of our five top priority sectors for our wholesale banking activity. This unique transaction also highlights our expertise and expanding foothold in the Islamic finance segment," said Vasgen Edwards, global head of aerospace and transport at NBAD.

"We are extremely proud that in the first quarter of this year, NBAD was ranked as the world's number one bank for managing issuance of international sukuk," Edwards added.