Emirates looks to China for financing of its latest A340-500

The USD $119 million landmark financing agreement is for Emirates ninth A340-500 from a total order of 10, which will be delivered to the airline in August this year.

More than three-quarters of Emirates' aircraft financing is funded by international banks or operating lessors, and this first-ever leasing agreement with a China-based bank further demonstrates the airline's global standing within the international business community.

The financing, over a 12-year term, was arranged by CCB International Finance Limited, Hong Kong, and is fully funded by China Construction Bank Corporation, Hong Kong Branch. It carries an attractive margin of 0.78 per cent over six month Libor (London Inter Bank Offered Rate).

Riyaz Peermohamed, Emirates' Senior Vice President Corporate Treasury, said:

"This is the first time an Emirates aircraft has been financed by a China-based bank and it will help us diversify our funding resources further. We are grateful for the support of China Construction Bank Corporation, which is one of the largest banks in China."

Emirates, the Dubai-based international airline, currently has 78 aircraft, including 29 Airbus A330-200s, 12 Boeing 777-300s, nine Boeing 777-200s, eight Airbus 340-500s, eight A340-300s, four Boeing 777-300ERs, one Airbus A310, one Airbus A310F and six Boeing 747 freighters.

Emirates flies to 77 cities in 54 countries in Europe, North America, the Middle East, Africa, Indian subcontinent and Asia-Pacific. Since January 2004 the airline has launched services to a number of new destinations, including the Seychelles, Seoul and Alexandria so far this year.

Its order book currently includes 45 Airbus A380-800s (including two A380Fs), 26 Boeing 777-300ERs plus nine options, 2 Airbus A340-500 (including this aircraft being financed), 2 A310-300Fs and 20 Airbus A340-600 Higher Gross Weight aircraft. By 2012 Emirates expects to have twice as many jets in its fleet as it does today.