Mubasher: Alafco Aviation Lease and Finance Co has signed an unsecured consolidated financing agreement valued at $470 million for a period of five years.

This unsecured loan will be operated by Al Ahli Bank of Kuwait (ABK) – Dubai International Financial Centre (DIFC) and HSBC Bank Middle East.

An amount of $270 million will be withdrawn on Monday, 24 June, while the remaining amount will be withdrawn in December 2019, Alafco said in a filing to Boursa Kuwait on Monday.

Until the current time, eight banks have contributed in this consolidated financing, yet it is expected for the number of banks to grow in December this year.

In case more banks join this financing, Alafco will consider raising the funding amount to $650 million as a maximum value.

Alafco clarified that the financial impact of this financing will be an increase in the assets and the liabilities by $270 million ($81 million) each.

Furthermore, the assets and liabilities will be increased by $200 million ($60 million) each during the first quarter of fiscal year 2019/20.