Etihad Airways Takes Delivery of Two Locally Financed Aircraft

Etihad Airways has taken delivery of its first aircraft to be financed by a local UAE bank since 2008.

Abu Dhabi-based First Gulf Bank has provided the finance for two Boeing 777-300ER aircraft, to be delivered to Etihad Airways in 2013, through a Sharia-compliant Ijara Muntahia Bittamleek structure.

The first of these two Boeing aircraft arrived recently at Abu Dhabi airport from Seattle and the second is expected to be delivered to Etihad Airways in May 2013.

“The strong financial structure and performance of Etihad Airways ensures that the airline regularly attracts funding from banks and institutions from around the world, as well as from across the region,” said James Hogan, Etihad Airways’ President and Chief Executive Officer. “The financing of these two aircraft is an important development as it shows First Gulf Bank’s support of Etihad Airways’ fleet expansion as well as our commitment to working as much as possible with local UAE and Middle East-based banks.”

The total facility value offered by First Gulf Bank is approximately US$359 million and it has a financing structure term of 12 years. Within the agreement, First Gulf Bank participates as the Initial Lead Arranger, the Underwriter, the Facility Agent and the Security Trustee.