Air Arabia secures $350m loan for 2014 deliveries

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Air Arabia has signed a AED 1.3 billion ($350 million) loan facility with Qatar National Bank and Abu Dhabi-based Commercial Bank International to support its fleet expansion plans.

The facility will support the purchase of 10 new Airbus A320 aircraft scheduled for delivery in 2014, confirms the Arabian budget carrier.

According to Flightglobal's Ascend online database, Air Arabia is due to take five A320s in the first half of next year and another five in the second half.

The carrier has a total of six A320 deliveries scheduled this year. Two deliveries have closed under finance lease structures arranged by German financier KfW IPEX-Bank. Another four of them have already are under 12-year export credit agency (ECA)-supported loan facility fronted by Euler Hermes. KfW IPEX-Bank acts as sole arranger, agent and security trustee in the transaction.

The 10 units under the new loan facility are part of a 44-aircraft order placed with Airbus in 2007.