Emirates Group has closed a $239 million (Dh880 million) financing agreement for aircraft engines with a US government agency, company representatives said.
The deal with the Export-Import Bank (Ex-Im Bank) covers 22 GE90 General Electric (GE) and Rolls Royce (RR) engines. This is the first financing of engines by Emirates and also the first time it has used support from the Ex-Im Bank, company representatives said.
"We are pleased to assist in financing General Electric's sale to Emirates. With this transaction, we launch a new business relationship with Emirates on behalf of US aerospace companies, and we look forward to doing more business with this growing airline," said April Foley, the Ex-Im Bank's vice-chairman. Foley spoke at a commemorative event held at the bank's headquarters in Washington, DC. The financing was fully arranged and funded by Royal Bank of Scotland and includes $129 million (Dh473.4 million) for seven GE90 spare engines using Ex-Im Bank support, and $110 million (Dh403.7 million) for 15 RR engines using commercial debt.
The first of the GE90 engines was delivered last December, and delivery of the remaining six will be completed by 2007. The RR engines have been delivered. Financing terms for the spare GE90 engines is five years, and eight years for the RR engines. "We are counting on the reliability of the GE90 engines to power the 30 new Boeing 777-300 Extended Range aircraft we will start receiving at the end of this month. These aircraft will play a key role in supporting our additional long-haul reach and capacity," said Dermot Mannion, Emirates Group's president for group support services.
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