Abu Dhabi-based airline Etihad Airways has taken delivery of the first of two Boeing aircraft purchased using locally raised Islamic finance.
UAE-based First Gulf Bank has provided a $359m sharia-compliant facility for the airline to secure the aircraft. It is the first time since 2008 the airline has turned to UAE banks for funding.
The airline has received the first Boeing 777-300ER aircraft and is expected to take delivery of the other aircraft in May.
First Gulf Bank was the initial lead arranger and underwriter for the Ijara Muntahia Bittamleek structure, a form of Islamic lease financing.
Etihad Airways issued a request for proposals for the financing of nine aircraft to be delivered during 2013. The airline has said it has received positive responses from many international banks and financial institutions.