Abu Dhabi, May 1st, 2007 (WAM) - Etihad Airways has signed the terms ofa USD 400 million agreement for an Islamic lease financing facility thatwill be used to finance the airline's acquisition of four Airbus A340-500aircraft delivered in 2006.
In terms of this agreement, Citi, and ADCB acting as mandated lead arrangersand joint bookrunners for a consortium of six lenders, which includes,as mandated lead arrangers: ABC Islamic Bank, First Gulf Bank, QatarNational Bank Standard Chartered Bank, and as Arrangers: Arab AfricanInternational Bank and China Construction Bank Corporation/ Hong KongBranch, will provide financing valued at USD400 million to the airline.
The sale and lease back arrangement is the first Islamic financing dealto be concluded by Etihad Airways, and the largest Islamic deal of itskind to be concluded by an airline. James Hogan, Etihad Airways' chief executive, said: "This agreement setsa new standard for us. The cost of funding agreed between Etihad and thebanks in the consortium represents an outstanding achievement. We believethat this partnership lays the ground work for future co-operation inthe international arena.""During these first stages of the implementation of our three-year businessplan, we are focused on establishing a commercial platform and strongcorporate governance that will be good for our business and generate credibilityand confidence in the international business community. We look forwardto work with business partners who understand our shareholder mandateand business needs."Hogan also acknowledged the high level of support from the Governmentof Abu Dhabi and the benefits of this relationship to the future of aviationin Abu Dhabi and the greater region. The Etihad fleet presently comprises 25 aircraft and will expand to 31by the end of the year, during which the airline will take delivery oftwo Airbus A330-200 and four Airbus A340-600 aircraft. Hogan added: "Etihad has set unprecedented standards for growth, whichwhile earning it the title of the world's fastest growing airline, havealso created an expectation and benchmark that will be hard to match."Mohammed Al-Shroogi, Citi managing director for the Middle East and chiefexecutive for Citi in the UAE, said: "We are happy to play the role ofjoint lead arranger of this facility on behalf of Etihad Airways, thenational airline of the UAE. Through Citi Islamic Investment Bank, Citihas been a leading arranger of Islamic financing and we are honoured tointroduce Etihad to this rapidly growing market." Eirvin Knox, chief executive of ADCB, said: "This deal represents anotherimportant and significant milestone in our extremely special relationshipwith Etihad Airways. ADCB has a long-term commitment to supporting crucialAbu Dhabi enterprises, and Etihad stands at the forefront of such excitingventures and initiatives. We look forward to supporting Etihad in itsquest, and will be steadfast in our resolve to assist Etihad with itsfleet expansion in the years ahead."
