Emirates completes $2.6 billion Airbus fleet financing
Emirates has completed the $2.6 billion financing program needed to back its new Airbus fleet. The money required came from a wide range of regional and international sources, including conventional export credit agency and commercial asset-backed debt, and non-conventional sources, such as Islamic funding and equity from Japanese investors.
Nearly half the money, some $1.17 billion, came from international financial institutions using export credit agency backed debt. A significant slice, $715 million, was financed on a commercial debt basis. More than half of this came from western banks, with the balance of $269 million raised from regional banks.
Some $386 million was generated using Islamic funding, a new and fast-growing source of finance, allowing Emirates to acquire five of the A330s. Japanese lessors helped to finance seven A330s using a combination of equity and debt.
Another three of the 29 Airbuses were financed in Euro and four in UK Sterling pound. Eighteen were financed using fixed-rate funding, and the other eleven on a floating basis.
Emirates has taken a balanced approach towards managing interest rate exposure and about 45 percent of its overall debt and operating leases are on a fixed interest rate basis, with the remaining 55 percent on floating interest rate.
Emirates has one of the youngest fleets of any major international scheduled airline, on average just 36 months. With the delivery of its last A330 at the end of this week, its fleet will include 29 Airbus A330s, 20 Boeing 777s three Boeing 747 freighters and one Airbus A310. — (menareport.com)
© 2003 Mena Report (www.menareport.com)