Emirates signs another Islamic aircraft lease

Published July 14th, 2003 - 02:00 GMT

Emirates has signed a $90 million Islamic Lease for one Airbus A330 airliner over a 12-year term. This is the second Emirates A330 aircraft financed using Islamic funds, stated a press release.  


The financing, structured as an Islamic operating lease, was arranged by HSBC Structured Finance, Hong Kong with HSBC Amanah Finance (Dubai) and Dubai Islamic Bank as Islamic structuring advisers.  


The funding is provided by Dubai Islamic Bank, Abu Dhabi Commercial Bank, National Bank of Dubai, HSBC Bank Middle East and Emirates Bank International at a competitive rate of return as compared with more conventional modes of financing.  


The financing covers one new Airbus A330-200 aircraft, delivered earlier on April 29. It is powered by Rolls Royce Trent 700 series engines and is the 27th of 29 Airbus A330-200 aircraft currently on firm order. The current passenger fleet stands at 50 aircraft.  


“Of our total fleet of 50 aircraft, this is Emirates' sixth wide-bodied aircraft financed using Islamic funds and takes the total amount raised from Islamic investors to more than $500 million for the first time,” said Emirates' Corporate Treasurer, Riyaz Peermohamed.  


At the Paris Air show recently, Emirates placed the biggest order in civil aviation history, worth $19 billion. The confirmed orders announced in Paris, along with those revealed at the Dubai Air show two years ago, bring Emirates' current total order book to $26 billion.  


The expansion will increase Emirates fleet to 125 aircraft by 2012, as part of long-term plans to serve many new countries. Its order book now includes 45 Airbus A380-800s, 26 Boeing 777-300ERs, eight ultra-long-range Airbus A340-500s, 20 Airbus A340-600 Higher Gross Weight aircraft and one Airbus A330. — (menareport.com) 





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