Emirates has signed a US$172.6 million financing agreement for the acquisition of two Airbus A330-200s, the 12th and 13th of a firm order for 21 of the aircraft.
The financing for the 12th aircraft is structured as an 11-year Japanese Operating lease, while the 13th aircraft is financed on a 10-year Finance Lease. Both financing deals were arranged by Credit Agricole Indosuez and guaranteed by the UK’s Export Credit Guarantee Department (ECGD), Germany’s HERMES and France’s COFACE. The other leading banks involved are Kreditanstalt Fur Wiederaufbau, Norddeutsche Landesbank Girozentrale and DGZ.DekaBank-Deutsche Kommunalbank.
The debt on the 12th aircraft is financed at a fixed rate of 6.7% while the 13th aircraft is financed at a floating average margin of 0.77 per cent over US$ LIBOR.
Dermot Mannion, Chief Director Finance, IT & Services, signed the financing documents with Anne-Marie Siffroy Pytlak, Head of Aircraft Financing and Sitor Senghor of Credit Agricole Indosuez, Rebecca Tomicic from Norddeutsche Landesbank and Cornelia Thale from DGZ.DekaBank-Deutsche Kommunalbank.
Riyaz Peermohamed, Emirates’ Corporate Treasurer said: “We are very grateful for the continuing support of Credit Agricole Indosuez which is a major player in the aircraft financing market.
“In this deal, they have used their Japanese presence to create a low-cost funding structure. This is the fourth widebodied aircraft to be financed in this manner during a 12-month period for Emirates.”
In addition to the 21 A330-200 aircraft on firm order, Emirates has also on order seven B777-300 and six long range A340-500 aircraft. The airline has options also on a further three A330-200 and ten A340-500 aircraft.
Emirates became the first airline to sign a firm commitment for the world’s largest airliner, the A380 aircraft, to become pioneer customer on this prestigious Airbus programme.