Malaysia Airlines closed financing on its final Airbus A380 aircraft using the proceeds from an existing Islamic bond facility.

The aircraft (MSN 114) is Airbus' 100th A380 delivery.

The Bai Bithaman Ajil Islamic financing arrangement was established in November 2012 through Turus Pesawat, a special purpose company wholly-owned by the Malaysian ministry of finance. It raised up to ringgit (M$) 5.3 billion ($1.73 billion) for the financing of eight Airbus aircraft, including six A380-800s, one A330-200F and one A330-300.

Notes issued under the bond have an effective tenure of up to 20 years.

MAS says that the funds will go towards pre-delivery payments, to pay down the balance of the purchase price including buyer furnished equipment as well as the redemption of any bridging facility or credit line undertaken by the carrier in relation to the aircraft purchases.

Source: Commercial Aviation Online