MANAMA: Gulf Air has signed a $70 million facility with Bahrain Islamic Bank (BisB).

This four-year medium-term facility will be used to partly finance eight A320 aircraft, which are expected to delivered in the fourth quarter of this year and first quarter of next year.

"We are glad to have partnered with BisB, one of the pioneering Islamic banks in the region," said Gulf Air chairman and Mumtalakat chief executive Talal Alzain.

"As the national carrier of Bahrain, Gulf Air is an integral part of the nation's economy and this ijara (leasing) arrangement will facilitate Gulf Air to further strengthen its presence as a key player in the regional and global aviation industry and move on with its realignment programme in tune with Bahrain's 'Vision 2030' strategy."

"Just like Gulf Air, which has a long and established presence in the aviation sector, BisB has also maintained a prominent presence in the Islamic banking sector by adopting innovative Islamic investment and financing products," BIsB chief executive officer Mohammed Ebrahim Mohammed said.

"We are delighted to have arranged this facility to meet Gulf Air's financing requirements, demonstrating our confidence and faith in Gulf Air.

"In 2007, Gulf Air became a 100 per cent Bahraini owned company and since then the airline has made a conscious effort to work with local companies whenever possible," added Gulf Air chief executive officer Samer Majali.

"Our ultimate aim is to build an efficient, sustainable business and a dynamic national airline that effectively serves the people and economy of Bahrain.

"This loan facility is an example of the trust and confidence that BisB have upon the national carrier's future," he added.

The transaction legal counsels representing BisB were Denton Wilde Sapte - Paul Jarvis and Sami Syadi.

The transaction legal counsels representing Gulf Air were Linklaters and Hassan Radhi and Associates..