Tunisair successfully acquired two Islamic banks, Zitouna Bank and Al Baraka Bank, for the financing of 2 aircraft and maintenance.
Most important was the co-financing of the 2 banks for the purchase on behalf of Tunisair Express, a subsidiary of Tunisair, which is on the verge of bankruptcy. 2 ATR72-600 to serve domestic destinations and regional flights, notably to Malta and Italy.
Acquired under Islamic finance ("tijara islamia") rules, financed by Zitouna Bank, the first plane was delivered to Tunisair Express on 19.11.2019. The second plane was delivered, on 31.12.2019 and financed by Al Baraka Bank. A third will be delivered in April 2020.
In addition of financing these 2 planes, the 2 banks are financing further facilities of Tunisair.
As an indication, Zitouna Bank, whose deposits are around 3.5 billion Tunisian dinars (1.1 Billion EUR), financed fuel used by Tunisair and repair of engines of presently grounded aircraft.
The market share of Islamic finance in Tunisia is still low. Represented by 3 banks, Zitouna Bank (Qatari group Majda Tunisia and Al Baraka Bank (Saudi Cheikh Salah Kamel group) and Wifak International Bank, this shares to about 6% of the total sector.
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