Jazeera Airways secures refinancing facility with Arab Banking

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Jazeera Airways Group has secured an $18.3 million aircraft refinancing facility through Bahrain-based Arab Banking (ABC).

The $18.3 million refinancing facility has a five-year term and the proceeds will be used to close an existing facility through the French corporate and investment bank Natixis, resulting in a reduction of the group’s debt financing charges.

“The improving debt markets have given us the opportunity to lower our cost of debt, enabling us to deploy an even better capital structure and a stronger balance sheet to support the group’s operations and strategic growth prospects,” says chairman Marwan Boodai.

Middle Eastern budget carrier Jazeera Airways received its final Airbus A320 at the end of May.

The new A320 was acquired by fully owned leasing arm Sahaab Aircraft Leasing and jointly financed by DVB Bank and National Bank of Kuwait as debt providers in the transaction.

Jazeera Airways now operates eight A320s, while Sahaab has aircraft on lease to Flynas, SriLankan Airlines, TAP Portugal and Virgin America.

The group has previously disclosed that it is considering placing a new aircraft order this year.