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Bahrain-based Gulf International Bank BSC featured heavily in the deal as one of four debt providers as well as a co-debt underwriter. The other three debt providers were BNP Paribas Aviation Finance Group and Calyon, from France, together with National Bank of Abu Dhabi, who acted as a co-debt underwriter alongside Gulf International Bank BSC.
The award-winning transaction was coordinated by Calyon, the international banking and capital investment arm of French bank, Crédit Agricole, and involved the French institution BNP Paribas-Capstar Partners as the mandated lease arranger.
The deal, worth $148m, involved an innovative French tax lease, the first of its kind for Etihad Airways. It was also the first time that three French banks had worked together on a French lease for a Middle East airline.
The award was presented to Etihad's chief financial officer James Rigney at the 28th Annual New York Airfinance Conference held in New York.
James Hogan, Etihad Airways' chief executive, said:
"These are exciting times for Etihad as the airline continues to grow and establish itself firmly on the global stage. The strong support we continue to receive from the financial community is extremely gratifying. The local, regional and international relationships we are building through partnership deals such as this are critical to our development and future success".
James Rigney added: "It is pleasing that we now enjoy a level of credibility and the confidence of the regional and international financial community to make deals of this size and significance possible".
"We put a lot of hard work into this particular deal and achieved a key objective of introducing an array of new, international banks to our business. Whilst we don't want to use the same type of financing deal for every transaction, we do believe we have broken new ground with this deal".
Mr. Abbas Ameeri, managing director, merchant banking, Gulf International Bank B.S.C., said: "We are delighted to be part of this award-winning French-tax lease financing transaction, which is yet another avenue of innovative financing for Etihad Airways. The airline is currently undergoing tremendous expansion and Gulf International Bank is play its part in this exciting growth story".
Anne-Marie Siffroy-Pytlak, head of Calyon's Middle East and West Asia aviation team said: "Etihad should be congratulated for securing a very competitive financing deal, combining an innovative tax structure and the support of the regional banks".
The award-winning deal concerned a four-engined Airbus A340-600 which was delivered in December 2007 to Etihad.
The financing deal was part of a wider undertaking by the airline, which purchased two additional Airbus A340-600s during 2007 using a $250m financing facility with Abu Dhabi Commercial Bank, Arab Banking Corp and Standard Chartered Bank.
The transaction of the three Airbus A340-600 was part of several financing deals arranged by Etihad in 2007 totalling almost $1.4bn.
Etihad Airways' fleet currently comprises 37 wide and narrow bodied aircraft and will expand to 40 by the end of 2008.
Posted by Eman Hassan
