Bahrain-based Bank ABC, formerly Arab Banking Corporation, has closed the financing of the first of two Airbus A320-200 aircraft for Dubai-based DAE Capital, which will be leased to Flyadeal, the low-cost subsidiary of Saudi Arabian Airlines (Saudia).

According to Bank ABC Wholesale Banking Group head Jonathan Robinson, the deal demonstrates the bank’s ability to structure, arrange and fund a complex cross-border financing on schedule and underlines the bank’s commitment to the aviation sector and its leasing partners.

Flyadeal began commercial operations earlier this year.

It is the fifth airline to utilise Terminal 5 for domestic flights at the King Khalid International airport in Riyadh. The other airlines include Saudia and three privately-owned airlines including Flynas, SaudiGulf and Nesma.

MEED understands DAE Capital, the leasing arm of Dubai Aerospace Enterprise, will be leasing six other aircraft of the same model to Flyadeal.

DAE Capital has an owned, managed and committed fleet of nearly 400 Airbus, ATR and Boeing aircraft with a fleet value of $14bn.