To buy 3 A340-600 wide-body aircraft
Etihad Airways has agreed aircraft financing facilities worth nearly $400 million to acquire three new Airbus A340-600 wide-body aircraft to add to its expanding fleet.
The Abu Dhabi-based airline has signed a $250 million aircraft financing loan with a consortium of regional and international banks to finance the air carrier's acquisition of two 288-seat aircraft.
It has also mandated a separate group of regional and international banks to raise a further $148 million financing facility under a French lease structure to acquire a third new A340-600 aircraft.
The $250 million secured commercial loan has been provided by three separate banks, led by co-arrangers and lenders Abu Dhabi Commercial Bank (ADCB), Arab Banking Corporation (ABC) and Standard Chartered Bank (SCB).
The $148 million lease financing is being co-ordinated by Calyon, the international banking and capital investment arm of French bank Credit Agricole, and involves French lease arrangers BNP Paribas-Capstar Partners and Natixis Transport Finance. The deal involves four debt providers: BNP Paribas-Capstar Partners, Calyon, Gulf International Bank and National Bank of Abu Dhabi. Two aircraft have been recently received by Etihad and are already in service.
The remaining aircraft are due to be delivered to Etihad next month. James Hogan, airline chief executive, said: "In four short years our air carrier has evolved from a startup airline into a major player in the international aviation arena. It is pleasing that the air carrier now enjoys the credibility and confidence of the regional and international financial community to make a deal of this size and significance possible.
"This agreement is indicative of the strong relationship between Etihad Airways and the financial community. We appreciate the support of like-minded business partners who continue to underpin the present and future growth and development of the airline."
Shayne Nelson, regional chief executive officer of SCB Middle East and North Africa, acting as co-arranger and lender for the $250 million secured commercial loan facility, said: "This is an innovative aircraft-financing deal, not only for Standard Chartered but for Etihad Airways, our banking partners in this deal and the United Arab Emirates banking industry.
The bank has established a formidable reputation for being an innovative market leader and a reliable business partner, providing clients with the most effective capital-raising solutions to achieve their financing and investment objectives.
Standard Chartered, ADCB and ABC underscore our ability to facilitate vital projects in the development of Abu Dhabi while demonstrating our support for the airline's continued strong growth."
© Bahrain Tribune 2007
