Emirates Completes US$88.6 Million Financing Deal For New Aircraft

Emirates has signed a US$88.6 million financing agreement for the acquisition of the 16th of 21 Airbus A330-200 aircraft on firm order.

The aircraft, powered by Rolls Royce Trent Series engines, is scheduled to arrive in Dubai on March 30th, following its delivery flight from Airbus Industrie's headquarters in Toulouse, France.

The financing, structured as a 12-year Finance Lease, was arranged by Citibank 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 export credit debt is financed at a fixed rate of 5.94 per cent while the mismatch loan is financed at a floating margin of 70 bps over US$ Libor.

Dermot Mannion, Chief Director Finance, IT & Services, signed the financing documents with Anup Lakhani, Vice President, Citibank, and Cornelia Thale of DGZ.DekaBank-Deutsche Kommunalbank Riyaz Peermohamed, Emirates' Corporate Treasurer said: "We are very grateful for the commitment shown by Citibank with whom we have developed an excellent relationship over the years."

In addition to the 21 A330-200 aircraft on firm order, Emirates has on order seven B777-300s and six long-range A340-500 aircraft. Emirates has options also on a further three A330-200s and ten A340-500 aircraft.

Emirates became the first airline to sign a firm commitment for the world's largest airliner, the A380 aircraft, committing to five passenger and two freighter versions, the first of which will be delivered by 2006.