The Abu Dhabi-based airline has signed a $102m aircraft financing facility with a consortium of regional and international banks to finance the airline's acquisition of one of the 288-seat aircraft.
The 12-year finance lease was provided in equal shares by three separate banks, led by co-arrangers and lenders Abu Dhabi Commercial Bank (ADCB), Standard Chartered Bank (SCB) and Sumitomo Mitsui Banking Corporation Europe Ltd (SMBC).
It has also mandated a new local bank to raise a further $110m under an Islamic financing facility. Al Hilal Bank, a newly established Islamic bank based in Abu Dhabi, will provide a 12-year Islamic finance lease for the purchase of the other A340-600 aircraft.
One of the aircraft has been flying in Etihad's colours since October 2008 and the other one is due to be delivered in December 2008 to the airline.
James Hogan, Etihad Airways' chief executive, said: "These deals have been secured at a time of extreme liquidity stress in the international banking market, and their conclusion in this adverse environment is indicative of the strong relationship between Etihad Airways and the regional and international financial community.
"It is also testament to the growing credibility and confidence Etihad now enjoys among its key business partners. We appreciate the support of like-minded business partners who continue to underpin the present and future growth and development of Etihad Airways."
Speaking on behalf of the consortium, Jeremy Parish, CEO of Standard Chartered Bank, Abu Dhabi and Al Ain, said: "SCB, SMBC and ADCB are delighted to support Etihad's growth with this landmark transaction. We have demonstrated in these troubled times the strength of our relationship with the world's fastest growing airline."
Mohammed Jamil Berro, Al Hilal Bank's CEO, said: "It is with particular pride that Al Hilal Bank participates in this deal with Etihad Airways. This type of deal underscores the stable nature of our economy and we are quite pleased that our bank was chosen after a rigorous vetting process that ultimately highlighted our commitment and credentials."
The Etihad fleet presently comprises 39 aircraft and will grow to 42 by the end of the year, with the delivery of the last Airbus A340-600 aircraft in December.
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Etihad secures $210m aircraft financing
- United Arab Emirates: Tuesday, November 25 - 2008 at 17:30
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Etihad Airways has agreed aircraft financing facilities worth more than $210m to acquire two new Airbus A340-600 wide-body aircraft to add to its expanding fleet.
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Posted by Lara Lynn Golden, News EditorTuesday, November 25 - 2008 at 17:30 UAE local time (GMT+4)
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Etihad Airways
Etihad Airways is the national airline of the United Arab Emirates based in the UAE's capital, Abu Dhabi.
Currently Etihad offers flights to 48 destinations in the Middle East, Europe, North America, Africa, Asia and Australasia.
For further details: Etihad Airways Corporate Communications:
Tel: + 971 (0) 2505 8006 / 8336 / 8055
Abu Dhabi Commercial Bank (ADCB)
Abu Dhabi Commercial Bank is a diversified, full-service bank. Other than banking services that span corporate, retail and commercial banking, ADCB is active in the areas of treasury derivatives, infrastructure finance, private banking and wealth management.
Standard Chartered Bank (SCB)
Standard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions. Standard Chartered aspires to be the best international bank for its customers across its markets. The Group has around 1,750 branches and outlets located in over 70 countries.
Sumitomo Mitsui Banking Corporation (SMBC)
SMBC is recognised as one of the market leaders in structured finance, with unique product knowledge and over twenty thousand dedicated employees in finance centres around the globe. The group offers a range of major banking services worldwide.
Sumitomo Mitsui Banking Corporation Europe Limited has its head office in London and focuses particularly on project finance, international finance and corporate banking in Europe and the Middle East. SMBCE is a wholly-owned subsidiary of SMBC.
Al Hilal
Al Hilal Bank is wholly owned by the Abu Dhabi Investment Council, which is an investment body of the Government of Abu Dhabi. The Bank has an authorised capital of over AED 4 billion and is licensed to operate as an Islamic commercial bank. Al Hilal Bank is committed to becoming the region's leading financial institution, escalating the development of Islamic Banking with a fresh approach to the industry, new technology and service excellence.
Etihad Airways is the national airline of the United Arab Emirates based in the UAE's capital, Abu Dhabi.
Currently Etihad offers flights to 48 destinations in the Middle East, Europe, North America, Africa, Asia and Australasia.
For further details: Etihad Airways Corporate Communications:
Tel: + 971 (0) 2505 8006 / 8336 / 8055
Abu Dhabi Commercial Bank (ADCB)
Abu Dhabi Commercial Bank is a diversified, full-service bank. Other than banking services that span corporate, retail and commercial banking, ADCB is active in the areas of treasury derivatives, infrastructure finance, private banking and wealth management.
Standard Chartered Bank (SCB)
Standard Chartered PLC, listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions. Standard Chartered aspires to be the best international bank for its customers across its markets. The Group has around 1,750 branches and outlets located in over 70 countries.
Sumitomo Mitsui Banking Corporation (SMBC)
SMBC is recognised as one of the market leaders in structured finance, with unique product knowledge and over twenty thousand dedicated employees in finance centres around the globe. The group offers a range of major banking services worldwide.
Sumitomo Mitsui Banking Corporation Europe Limited has its head office in London and focuses particularly on project finance, international finance and corporate banking in Europe and the Middle East. SMBCE is a wholly-owned subsidiary of SMBC.
Al Hilal
Al Hilal Bank is wholly owned by the Abu Dhabi Investment Council, which is an investment body of the Government of Abu Dhabi. The Bank has an authorised capital of over AED 4 billion and is licensed to operate as an Islamic commercial bank. Al Hilal Bank is committed to becoming the region's leading financial institution, escalating the development of Islamic Banking with a fresh approach to the industry, new technology and service excellence.
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