By Staff writer
Dubai airline seeking short-term financing due to lack of funding from European export credit agency
Emirates is reportedly seeking to raise $2.5 billion to fund the purchase of 10 Airbus A380s.
The airline is planning an 18-month bridge loan priced at about 135 basis points over the London Interbank Offered Rate, reported Bloomberg, citing two anonymous sources.
The bridge facility will later be converted to a 12-year loan to fund about 10 A380s, delivered before the year end.
The Dubai-owned carrier is seeking short-term financing due to the lack of funding from the European export credit agency, which is expected to become available in six to 12 months, said the report. ECA-backed funding will replace the bridge facility when it’s available and some of the lenders will be repaid, it said.
“Emirates has received financing offers for all our new aircraft deliveries for the financial year 2016 and 2017,” said an Emirates spokesperson. “As part of our financing strategy, we continue to engage with various institutions for the financing of our future aircraft fleet, with a view to diversifying our sources of funding.”