Etihad Airways, Oasis Leasing and Barclays Capital sign key aircraft financing agreement

Terms of the deal were not announced, although based on the average list pricing of this aircraft in 2005, this would place the value of the agreement at approximately US$ 948 Million.

Barclays Capital is the sole mandated lead arranger and book runner for the transaction, and will also be the syndicating bank for the associated debt financing facility.

This financing agreement stems from the groundbreaking Memorandum of Agreement signed by Etihad in 2004 to acquire 24 Airbus aircraft, including 12 Airbus 330-200's. The agreement was considered the largest ever made by a startup airline.

The agreement to finance the aircraft acquisition follows several months of high level negotiations between Etihad and Oasis International Leasing. The parties came to agreement on a deal involving six aircraft, with a view to possibly looking at additional aircraft in the future. Most of the world's leading airlines lease a major proportion of their fleets in order to ensure flexibility of fleet management, and streamlining of cash flows.

At the signing ceremony, Robert Strodel, CEO of Etihad Airways noted the signing of the leases with Oasis is a step forward for both companies and a great example of how two UAE companies can be partners in a mutually rewarding relationship. "The fact that Oasis is a local leasing company with international interests is a tremendous advantage for Etihad and other UAE and regional companies."

Gordon Dixon, CEO of Oasis said that this major transaction with Etihad Airways represents another milestone in the history of Oasis, which concluded a major financing deal to buy a share in the purchase of 25 commercial aircraft with ten different airlines earlier this year.

"We are very pleased to continue our success with this important deal to finance a significant part of Etihad's modern fleet of aircraft. Aviation leasing is relatively new to the Middle East but is rapidly becoming accepted as an effective way to finance aircraft purchases. Both companies are relatively young and making strong progress in their respective sectors. It is a pleasure to be able to work with Etihad and Barclay's Capital and contribute to each other's growth and success," Dixon said.

Nicholas Hegarty, Managing Director and Head of Middle East and North Africa Investment Banking at Barclays Capital, said: "Barclays Capital is delighted to be associated with Etihad Airways and Oasis International Leasing. This landmark transaction is significant in supporting Abu Dhabi's further development as one of the region's leading tourist and industrial centres. And we are, of course, very pleased to be the first bank to bring the national airline of the United Arab Emirates to the international syndicated loan market, further demonstrating our commitment to providing financial solutions in the Middle East".

The six Airbus aircraft are scheduled to be delivered to Etihad starting later this month. The widebody A330-200 aircraft have been designed to Etihad's specifications and will feature a two zone configuration with seating for 262 guests. In Pearl Zone, each self-contained seat provides business travelers with a 180-degree, fully flat bed and direct aisle access.

The self-contained seats are also equipped with a 15" LCD monitor and the latest Audio-Video-On-Demand (AVOD). Coral Zone Guests enjoy spacious seats with up to 32" seat pitch, 10.4" seat back LCD monitors and AVOD.

The aircraft have also been designed to optimize cargo space, a feature that maximizes efficiency for Etihad.