Emirates has signed a $90 million multi-currency Islamic lease for one A330-200 aircraft with Jeddah-based Islamic Development Bank (IDB), arranged by HSBC. This is the first time ever that an entire A330 aircraft has been financed by a single Islamic institution.
IDB is one of the region's foremost financial institutions. Established in 1975, it is owned by 54 Muslim countries, and is one of the few financial institutions worldwide to carry an AAA credit rating from Standard and Poor's Rating Agency.
The financing, structured as a 12-year Islamic operating lease denominated largely in UK Sterling Pounds, with the remainder in US dollars, was arranged by HSBC Structured Finance, Hong Kong and HSBC Amanah Finance (Dubai), the global Islamic financial services division of HSBC Group. The funding is provided at a competitive rate of return compared with more conventional modes of financing.
The financing covers one new Airbus A330-200 aircraft, delivered to Emirates on June 24. Powered by Rolls Royce Trent 700 series engines, it is the 28th of 29 Airbus A330-200s currently on firm order, and has taken Emirates' total passenger fleet to 50 aircraft.
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 plan 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.
Emirates is one of the world's fastest-growing airlines. It flies to 66 cities in 46 countries in Europe, the Middle East, Africa, Asia, the Far East and Australia. By 2010 Emirates expects to carry 29 million people and 1.5 million tons of cargo a year, one reason why it is now the world's biggest buyer of new aircraft. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
