Prime Highlights:
- Emirates NBD has finalized a $350 million financing deal with Emirates Airlines for two Boeing 777 cargo aircraft.
- This is the first time the bank has entered into a direct mortgage-style financing agreement with the airline.
Key Facts:
- The new aircraft will expand Emirates SkyCargo’s capacity, strengthening trade routes across Asia, Europe, Africa, and the Americas.
- The deal reflects both Emirates Airlines’ growth strategy in cargo operations and Emirates NBD’s expanding role in aviation financing.
Key Background:
Emirates NBD is providing $350 million in financial support to Emirates Airlines for the purchase of two Boeing 777 freight aircraft. It is the first time the bank has used a direct mortgage-style funding method with the airline.
The new planes will join the Emirates SkyCargo fleet, increasing its long-distance cargo capacity. They will help the airline improve trade connections between Asia, Europe, Africa, and the Americas as it expands to meet the growing demand for global shipping and logistics.
What makes this deal different is the financing structure. In earlier transactions, Emirates used offshore Special Purpose Companies (SPCs) for such deals. The agreement this time is made directly with the bank. The transformation provides the Emirates with greater operational control, and it also makes the funding process easier. It also demonstrates the interest of airlines in more effective financial arrangements as it expands its cargo business.
This agreement marks a step forward for Emirates NBD, highlighting its expanding focus on financing within the aviation sector. Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said the agreement reflects the bank’s strong support for key sectors that contribute to the UAE’s economic growth.
Emirates Group also welcomed the partnership. Michael Doersam, Chief Financial & Group Services Officer, said, “This milestone transaction with Emirates NBD represents our first financing secured against an aircraft with the bank. He added that the deal builds on the strong partnership between the two companies and reflects trust in Emirates’ stable financial performance and successful business model.”
Emirates will also increase its cargo services with the two new Boeing 777 freighters and improve the status of Dubai as a global trade center. With the continued rise of international trade, the additional capacity will help us in supporting the supply chain and opening up more markets globally.
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