Malaysia Airlines (MAS) has secured an Islamic bond facility to raise up to ringgit (M$) 5.3 billion ($1.73 billion) for the financing of eight Airbus aircraft.
The bond was established through Turus Pesawat, a special purpose company wholly-owned by the ministry of finance, MAS said in a statement on Bursa Malaysia. Notes issued under the bond will have an effective tenure of up to 20 years.
The proceeds will be for the financing of eight aircraft - six Airbus A380-800s, one Airbus A330-200F and one A330-300. These aircraft are in MAS' existing order book.
MAS adds that the funds will go towards pre-delivery payments, payment of balance purchase price as well as the redemption of any bridging facility or credit line undertaken by the carrier in relation to the aircraft purchases.
The cash-strapped carrier has received three A380s and is scheduled to receive its fourth by November and the remaining two in early 2013, says a spokeswoman.
It operates a fleet of seven A330-200s and 13 A330-300s, and has another five -300s on order.
Earlier this year, MAS also issued a M$2.5 billion Islamic bond, which was fully subscribed.