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Emirates completes landmark Islamic financing deal

Emirates<.> has signed an Islamic financing agreement worth US$ 88.6m for the acquisition of…

Emirates<.> has signed an Islamic financing agreement worth US$ 88.6m for the acquisition of an Airbus A330-200 with Rolls-Royce engines. This landmark deal is the first of its kind to combine Islamic funding with European Export Credit Agency debt.



The financing, structured as a 10-year Finance Lease, was arranged by Hong Kong-based bank HSBC and 85% guaranteed by the UK`s Export Credit Guarantee Department (ECGD), Germany`s HERMES and France`s COFACE.



The export credit debt is financed at a rate of 5.94 per cent, while the Islamic funding bears a similarly competitive rate of return.



The highly attractive Islamic funding is provided by Dubai Islamic Bank, National Bank of Dubai, British Arab Commercial Bank and HSBC Bank.



The other leading banks involved are DGZ.DekaBank Deutsche Kommunal Bank, Norddeutsche Landesbank Girozentrale and Kreditanstalt Fur Wiederaufbau.



Dermot Mannion, Emirates` Chief Director Finance, IT & Services, signed the financing documents with Brian Jeffery, HSBC` Aircraft Finance Director; Butti Khalifa Bin Darwish Al Falasi, General Manager, Dubai Islamic Bank; Abdulshakoor Hussain Thalak and Omar Al Shamsi, both Assistant Chief Managers, National Bank of Dubai; and Cornelia Thale, Assistant Vice President for the German banks.



Mr Mannion said Emirates is extremely grateful for the support of the Islamic investors and is proud to be involved in this landmark deal.



Emirates` fleet of 36 aircraft includes 18 A330-200s, four B777-300s and nine B777-200s. The airline is also the launch customer for the 575-seat Airbus A380 double-decker, and has ordered seven for delivery from 2006.





Photo: Mr Mannion (seated centre) with, from left, Brian Jeffery, Abdulshakoor Hussain Thalak, Cornelia Thale and Butti Khalifa Bin Darwish Al Falasi.

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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