CIAF cancels Sukuk issuance, considers alternative financing methods

Joint venture aviation sector company, CIAF Leasing, has cancelled its plan to offer $50m worth of Sukuk, according to Salah Hashem, the company’s Chairperson.

The move was taken following a consensus reached during CIAF’s General Assembly. The company is also set to postpone its decision to buy three new aircraft, due to the fallout of the novel coronavirus (COVID-19) on the aviation sector.

Hashem added that CIAF is currently restructuring its plans, whilst giving consideration to its financing needs, taking into account alternative financing tools to Sukuk. 

CIAF had previously reported that it incurred monthly losses of at least $500,000 due to the suspension of international air traffic.

Earlier this year, the company had taken serious steps towards offering Sukuk at a value of $50m. It was forced to postpone and reconsider this step in light of the global pandemic and the international air traffic suspension.

CIAF boasts a fleet of 15 aircraft, three Boeing 737-800 aircrafts, three Embraer 170 commercial aircrafts, three Airbus 330-200 aircrafts, and Airbus 320-200 aircrafts, in addition to a Boeing 737-500 aircraft. They are all subject to operating leases at international airlines in Europe, China, and Tunisia, and to financial leasing to local airlines.

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