Emirates has signed its first-ever leasing agreement with a Chinese bank, China Construction Bank Corporation, for a new Airbus A340-500…
Emirates has signed its first-ever leasing agreement with a Chinese bank, China Construction Bank Corporation, for a new Airbus A340-500. The USD $119 million landmark financing agreement is for Emirates ninth A340-500 from a total order of 10, which will be delivered to the airline in August this year.
More than three-quarters of Emirates` aircraft financing is funded by international banks or operating lessors, and this first-ever leasing agreement with a China-based bank further demonstrates the airline`s global standing within the international business community.
The financing, over a 12-year term, was arranged by CCB International Finance Limited, Hong Kong, and is fully funded by China Construction Bank Corporation, Hong Kong Branch. It carries an attractive margin of 0.78 per cent over six month Libor (London Inter Bank Offered Rate).
Riyaz Peermohamed, Emirates` Senior Vice President Corporate Treasury, said:
This is the first time an Emirates aircraft has been financed by a China-based bank and it will help us diversify our funding resources further. We are grateful for the support of China Construction Bank Corporation, which is one of the largest banks in China.
Photo: Emirates` leasing agreement with China Construction Bank Corporation, its first ever such deal with a bank from China, for USD $119 million will finance a new Airbus A340-500 (pictured) – Emirates ninth from a total order of 10 – which will be delivered to the airline in August.
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