Three big South Korean lenders have lent a $85 million club loan to ALAFCO, a Kuwait-based aircraft leasing company, which recently raised $115 million in a six-year senior loan to buy a new Airbus A350.

State-run Korea Development Bank (KDB), Woori Bank and KEB Hana Bank have participated in the club deal, inviting an unidentified German transport financing company.

The total cost for the new airplane purchase is estimated at around $155 million, and ALAFCO financed the remainder on its own, according to the source.

In detail, KDB, KEB Hana and the German lender lent $30 million respectively, with Woori providing $25 million.

ALAFCO guaranteed the loan which is expected to yield less than 2% plus 3-month LIBOR.