Emirates completes its 0-M A330 aircraft financing

Emirates has signed a $100 million agreement for the financing of an airliner using the innovative UK operating lease structure over a 10-year term with Lloyds TSB Bank providing the equity.

This is the third A330 aircraft that Emirates has financed using this structure.

The agreement was for the acquisition of the 24th of 29 Airbus A330-200s powered by Rolls Royce Trent engines, which the carrier has on firm order. The aircraft was delivered earlier this month.

The aircraft financing is structured as a 10-year International Operating Lease (INTOL) wth Lloyds TSB Bank.

The INTOL structure was arranged by Babcock and Brown, with equity provided by Lloyds TSB Bank.

The lead debt arranger was Credit Agricole Indosuez and other leading banks involved were National Bank of Dubai, Mashreq Bank, Norddeutsche Landesbank Girozentrale and Standard Chartered Bank.

The debt portion was financed on a floating rate basis at an average margin of 0.80 percent over six-month London Inter Bank Offered Rate (LIBOR).

Riyaz Peermohamed, Emirates’ corporate treasurer, said “We are one of the fastest growing and most successful airlines in the world and creative cost management is one of the key challenges as we grow bigger.”

At last year’s Dubai Air show, the airline unveiled a stunning $15 billion fleet expansion plan, ordering 22 Airbus A380s, 25 Boeing 777s, eight A340-600s and three A330s, a total of 58 aircraft which will boost its fleet to 100 by 2010. (PNA)