Emirates raises $265m Islamic financing for two Boeing aircraft

The transaction involves long term leases for a period of 12 years.

Noor Islamic Bank arranged the Mandated Lead Arranger group comprising of Barclays Capital, CCB International Finance Limited, Noor Islamic Bank PJSC, SAMBA Financial Group and Standard Chartered Bank.

Noor Islamic Bank also acted as the Structuring Bank, Investment Manager and Investor Security Trustee on this financing

The first of the two aircraft was delivered in May 2008 and the second on 28 August 2008.

Speaking on behalf of the syndicate group banks, Hussain Al Qemzi, CEO, Noor Islamic Bank said:

"We appreciate the confidence placed in us and opportunity given by Emirates Airline to successfully execute our first aircraft financing mandate. This is a landmark financing deal that saw the bank play an important role as the sole Structuring Bank and Investment Manager/Security Trustee, arranging and coordinating the transaction between parties from across the globe. I would also like to thank Barclays, SCB, China Construction Bank and Samba for partnering with us in this highly successful transaction."

Brian Jeffery, Emirates' Senior Vice President Corporate Treasury, said: "Islamic financing is an important source of financing for Emirates and we have now raised nearly $1.3bn from this market, including the Sukuk Bond. Islamic financing provides competitive pricing with flexibility, which are both key elements in our financing strategy. We appreciate the efforts put in to conclude this transaction in a most professional manner and all the members of the Mandated Lead Arranger group have become important partners for us, as we engage on a hectic financing programme over the coming years."

The delivery of these aircraft brings Emirates' all-wide bodied passenger fleet to 111 aircraft.

Today, the airline has 63 Boeing 777s in its modern fleet, and it is set to become the world's largest 777 operator with another 39 of these jets, worth $10.1bn at list prices, on order.

Last month, Emirates received the first of its 58 Airbus 380s, which can transport up to 489 passengers per flight. Emirates operates services to 101 cities spanning over 60 countries on six continents.