Qatar Airways completes financing for two A321 aircraft

It is the first transaction for HSBC with Qatar Airways.

HSBC in Hong Kong has also been mandated as Arranger by Qatar Airways for the long term financing of the aircraft. The financing is to be structured as a finance lease, with the European Export Credit Agencies supporting 85% of the loan and the balance of 15% being a commercial loan.

Qatar Airways is one of the world's fastest growing airlines, serving 41 destinations throughout Europe, Africa, the Middle East and Asia. The two A321s will be deployed in a two-class layout to supplement the A320 fleet on Qatar Airways' regional scheduled services within the Gulf, to the Middle East and to southwest Asia. The airline's excellent product and high efficiency using aircraft closely optimised to the market are expected to underpin its continued rapid growth.

The HSBC Group is one of the world's largest financial services organizations, with offices in 80 countries and territories. HSBC Bank Middle East, a wholly-owned subsidiary since 1959, has a long-standing and extensive presence throughout the Middle East region with offices in Qatar, the UAE, Bahrain, Iran, Jordan, Lebanon, Oman and the Palestinian Autonomous Area, and associate banks in Saudi Arabia, Egypt, and North Africa.

Prime Aviation of London-Gatwick Airport advised Qatar Airways on the structuring of this transaction.

Qatar Airways recently signed an agreement with Airbus for an order of 34 aircraft in a $5.1 billion deal that will allow the airline to increase its fleet to 56 by 2008.

The present fleet consists of 24 new Airbus aircraft including A330-200s, A300-600s, A320-200s, and A319 Corporate Jets. The new order includes A330-200/300s, A340-600HGWs and A321s. The airline has also confirmed orders for the A380 'Super Jumbo'.

The Qatar Airways Group of Companies includes Qatar Airways, Qatar Duty Free, Qatar Aviation Catering Company, Qatar Aviation Services, Qatar Airways Holidays, the Qatar Distribution Company, and United Media International.