UAE banks arrange $175m facility for SriLankan Airlines

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A consortium of UAE banks have closed a $175 million Islamic structured facility for SriLankan Airlines.

Abu Dhabi Islamic Bank, Al Hilal Bank, Mashreq Al Islami, Noor Islamic Bank and United Bank acted as mandated lead arrangers and bookrunners of the four-year loan. Mashreq Al Islami acted as the co-ordinating bank.

The facility, which is Shariah compliant, was subscribed in US dollars and UAE dirhams.

The transaction marks SriLankan Airlines's debut in the international syndicated loan market.

Mashreq's head of international banking group John Iossifidis says: "Sri Lanka is a key strategic market for Mashreq and we are committed to working alongside our core relationship clients, to explore different forms of capital raising."