Emirates, the Dubai-based international airline, has signed a US$265 million (Lm94.6 million) financing agreement with the Export-Import Bank (Ex-Im) of the United States for two B777-300ER aircraft, scheduled for delivery in February and March 2006.
This is the first time that Emirates has used support from the US Ex-Im Bank, and creates a new source of aircraft financing for the airline’s rapidly-expanding fleet.
The financing for the two B777-300ER aircraft is fully arranged and funded by Royal Bank of Scotland (RBS). The innovative 12-year financing, which combines an Ex-Im supported loan with commercial funding, carries a weighted average cost of funds of 0.67 per cent over three-month Libor (London Inter Bank Offered Rate).
Riyaz Peermohamed, Emirates’ senior vice-president corporate treasury, said: “This US Ex-Im financing opens up yet another new and important source of financing and is a vote of continued confidence in Emirates. Our strengthening relationship with the US Ex-Im Bank will help us finance a number of Emirates future Boeing deliveries.”
Emirates is one of the world’s fastest growing international airlines, and the second most profitable. Independent and financially self-sustained, Emirates operates an all wide-bodied fleet of 87 aircraft comprising: 29 Airbus A330-200s, 12 Boeing 777-300s, nine Boeing 777-200s, ten Airbus 340-500s, eight A340-300s, ten Boeing 777-300ERs, one Airbus A310, two Airbus A310F and six Boeing 747 freighters.
Emirates flies to over 75 cities in 54 countries in Europe including Malta, North America, the Middle East, Africa, Indian subcontinent and Asia-Pacific. Since January 2005 the airline has launched services to a number of new destinations, including the Seychelles, Seoul and Alexandria this year.
Emirates operates four flights each week from Malta to Dubai with a stopover in Larnaca, Cyprus, on Monday, Wednesday, Friday and Sunday on A330-200. The Malta route gives a convenient connection to outgoing and incoming passengers from the Far East and Australia.