Qatar Airways and Standard Chartered Bank sign landmark deal

The tenor of the facility extends up to 12 years and is aimed at providing Qatar Airways with protection against possible interest rate rises.

"We are pleased that Standard Chartered has been able to support the continued growth of Qatar Airways, which has become one of the fastest growing airlines in the world" said Qatar Airways Chief Executive Officer Mr. Al Baker.

"This landmark Interest Rate Swap is a clear affirmation of Standard Chartered Bank's commitment to the long term strategic plans laid out by the Government for the continuous economic growth of the country", stated Arif Mansoor, Chief Executive Officer, Standard Chartered Bank Qatar. The above deal follows the recent long term financing of 2 Airbus A320 aircraft where Standard Chartered Bank also participated as one of the lenders.

Qatar Airways is serving 41 destinations throughout Europe, Africa, the Middle East and Asia. As a part of its expansion plan, Qatar Airways will extend its route network to 50 destinations by the end of 2003. The airline's excellent product and high efficiency, using aircraft closely optimised to the market, are expected to underpin its continued rapid growth. Qatar Airways recently signed an agreement with Airbus for an order of 34 aircraft in a USD5.1 billion deal that will help the airline in its goal to increase its fleet to 56 by 2008. It currently operates 24 new Airbus aircraft, including A330-200s, A300-600s, A320-200s and A319 Corporate jets, which will increase to 29 by the end of this year. It is one of the launch customers for the Airbus A380 'super jumbo' in 2009.

Qatar Airways also operates a number of subsidiary companies including, Qatar Aviation Services, Qatar Aviation Catering Company, Qatar Airways Holidays, Doha International Airport and Qatar Duty Free.

Standard Chartered is the first bank incorporated in the State of Qatar and offers in-depth coverage and expertise in structuring products to meet the specific requirements of its customers. In addition to Corporate and Institutional banking, the Bank offers a wide range of Retail Banking, Cash Management and Treasury products and services.

Standard Chartered Bank has a long-standing and extensive presence throughout the Middle East region with offices in Qatar, the UAE, Bahrain, Iran, Jordan, Lebanon, and Oman.

A strong and growing franchise, Standard Chartered Bank in the Middle East and South Asia (MESA) region contributed over 23 per cent to the Groups pre-tax profits, on revenues of USD271 million at the half year for 2003. Commenting on MESA's contribution, Chris Keljik, Group Executive Director overseeing MESA and Africa, affirmed, "The performance of the MESA region is a tribute to the strength of our people. I am very proud the region is now a significant part of our Group and has huge potential. In the last six months revenues were up 12 per cent and profit before tax up 17 per cent over the equivalent period last year.

"Our MESA business will continue to grow. It is a priority area for us."

David Edwards, Regional General Manager for Standard Chartered in the Middle East and South Asia, stated: "The growth of the Middle East and South Asia business is a clear validation of our commitment to these markets. We have continued our investment in our markets, and our partnership with our customers is reflected in our growing businesses."

Commenting on future plans, Mr. Edwards confirmed, "The Bank is dedicated to continuing to grow our business here. We have a strong portfolio of both consumer and corporate banking products in all our markets, and are leaders in many market segments across the region. We will continue to build on these, and to provide the best quality of service and product to our customers."