Business | Aviation
Etihad secures $210 million aircraft financing
Etihad Airways has agreed aircraft financing facilities worth more than $210 million to acquire two new Airbus A340-600 wide-body aircraft to add to its expanding fleet.
- Staff Report
- Published: 12:48 November 25, 2008
- From left: Colin Fraser of Abu Dhabi Commercial Bank, Mohammad Jamil Berro of Al Hilal Bank, James Hogan of Etihad Airways, Jeremy Parish of Standard Chartered Bank, and Nicholas Pitts-Tucker of Sumitomo Mitsui Banking Corporation.
- Image Credit: Supplied picture
Abu Dhabi: Etihad Airways has agreed aircraft financing facilities worth more than $210 million to acquire two new Airbus A340-600 wide-body aircraft to add to its expanding fleet.
The Abu Dhabi-based airline has signed a $102 million aircraft financing facility with a consortium of regional and international banks to finance the airline's acquisition of one of the 288-seat aircraft.
The 12-year finance lease was provided in equal shares by three separate banks, led by co-arrangers and lenders Abu Dhabi Commercial Bank (ADCB), Standard Chartered Bank (SCB) and Sumitomo Mitsui Banking Corporation Europe Ltd (SMBC).
It has also mandated a new local bank to raise a further $110 million under an Islamic financing facility. Al Hilal Bank, a newly established Islamic bank based in Abu Dhabi, will provide a 12-year Islamic finance lease for the purchase of the other A340-600 aircraft.
One of the aircraft has been flying in Etihad's colours since October 2008 and the other one is due to be delivered in December 2008 to the airline.
James Hogan, Etihad Airways' chief executive, said: "These deals have been secured at a time of extreme liquidity stress in the international banking market, and their conclusion in this adverse environment is indicative of the strong relationship between Etihad Airways and the regional and international financial community.''
The Etihad fleet presently comprises 39 aircraft and will grow to 42 by the end of the year, with the delivery of the last Airbus A340-600 aircraft in December.
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