EK raises US$297 million for Boeing deliveries
Emirates, the Dubai-based international airline, raised US$253 million for the financing of two new Boeing 777 aircraft. The 12-year finance leases were underwritten by three global financial institutions, namely HSH Nordbank AG, Mashreqbank.psc and Mizuho Corporate Bank, Ltd. HSH Nordbank also acted as Facility & Security Agent for the lenders.
The aircraft, one Boeing 777–200LR and one Boeing 777–300ER, were both delivered in January 2008.
Brian Jeffery, Emirates’ Senior Vice President Corporate Treasury said: “This group of banks was mandated not only on the basis of attractive pricing, but also because we had confidence in them to close the deal in a tight timeframe. All have become significant relationship banks for us over the past few years, and we particularly appreciate HSH Nordbank’s invaluable experience and commitment in arranging this transaction.
“The finance lease structure is simple yet flexible enough for our operational requirements, and is in line with our policy of using diversified funding sources.”
Emirates, already operating one of the largest 777 fleets in commercial aviation, has 53 Boeing 777s yet to be delivered comprising: six 777-200LRs, eight 777–200LR freighters and 39 777-300ERs.
The new aircraft will be deployed on the airline’s ultra long-haul services such as to Houston and Sao Paulo. Emirates introduced daily services to Houston from 1st February, after a successful launch of three-a-week services on 3rd December 2007.