Emirates signs up $160 million financing deal
Emirates has signed a $160 million financing agreement for two new aircraft using commercial bank funds, in a clear vote of confidence for the airline from the international financial community.The financing, over a 12-year term, was structured by Credit Agricole Indosuez with debt co-arrangers: National Bank of Dubai, Norddeutsche Landesbank, Kreditanstalt Fur Wiederaufbau (KfW), Mashreq Bank, Standard Chartered Bank and BNP Paribas. The debt was financed on a floating rate basis at a margin of 0.80% over six-month Libor (London Inter Bank Offered Rate). Dermot Mannion, Emirates' Chief Director Finance, IT & Services said: "This substantial commercial financing, supported by a range of international and local banks, is a continued vote of confidence in the airline. "We will continue to use a well-diversified approach in financing our fleet requirement, using a range of financing alternatives. We are very pleased to be involved in this financing with Credit Agricole Indosuez, which is one of the largest players in the aircraft financing world and has been a long term supporter of Emirates." The financing covers one brand-new Airbus A330-200 aircraft, delivered earlier last month, and another scheduled for delivery later. Powered by Rolls Royce Trent 700 Series engines, the aircraft are the 25th and 26th of 29 Airbus A330-200s currently on firm order, taking the Emirates fleet total to 47 aircraft. Emirates is the main launch customer of the super jumbo Airbus A380-800 and, at the last Dubai Air Show, the airline unveiled a stunning $15 billion fleet expansion plan, increasing its A380 order to 22, plus 25 new Boeing 777s, eight A340/600s and three A330s - a total of 58 aircraft which will boost its fleet to 100 by 2010.