Emirates in $226m leasing deal for Airbus A340-500s

Emirates has signed a lease financing agreement valued at $226 million for two new Airbus A340-500s, the world's longest-range aircraft.

The first A340-500 was delivered to the airline last week, and three more are due to arrive next month. They will be used on on-stop services to Sydney, Melbourne and New York, among other long haul routes.

Powered by Rolls-Royce Trent 500 series engines, they are among the eight Airbus A340-500s which Emirates has ordered.

The financing, structured as a euro operating lease over a 12-year term, was arranged by Crédit Agricole Indosuez, combining export credit and commercial debt provided by Norddeutsche Landesbank Girozentrale, Lloyds TSB Bank, DekaBank Deutsche Girozentrale, Kreditanstalt für Wiederaufbau and Emirates Bank International, as well as Crédit Agricole Indosuez itself.

The export credit debt is guaranteed by the UK's Export Credit Guarantee Department and its respective German and French counterparts, HERMES and COFACE.

The weighted average cost of funds was 0.8 per cent over the Euro inter-bank offered rate (Euribor).

Riyaz Peermohamed, Emirates' senior vice-president, corporate treasury, said: "This substantial lease financing, combining export credit with commercial debt and supported by a range of international banks, is a continued vote of confidence in the airline.

"The Euro lease rentals will create a natural hedge against our substantial inflows from Euroland. We are pleased to be involved in this financing with Crédit Agricole Indosuez, which is one of the largest players in the aircraft financing world and has always been a long-term Emirates supporter."