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Sun 4 Aug 2002 04:00 AM

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Emirates signs $90m deal in Islamic funding for Airbus

Emirates airlines signed on July 3, 2002, a 10-year $90 million Islamic finance deal with a consortium of banks for an Airbus plane.

Emirates airlines signed on July 3, 2002, a 10-year $90 million Islamic finance deal with a consortium of banks for an Airbus plane.The latest purchase marks the third transaction conducted using Islamic funds for an Airbus 330-200 in the past twelve months.Dubai Islamic Bank, Abu Dhabi Commercial Bank, National Bank of Dubai, HSBC Bank Middle East, Kuwait Finance House and British Arab Commercial Bank, have provided funding to the fast growing airline. A statement said the Islamic funding, would be based on a "competitive rate of return as compared with traditional modes of finance". "Islamic financing is rapidly becoming a reliable and substantial new source of funding for Emirates and will help finance our fleet expansion programme," Emirates Corporate Treasurer Riyaz Peermohamed said. Emirates announced plans last year to buy 22 Airbus A380s, with an option for 10 more costing around US $7 billion. The airline is also ordering three Airbus A330s, worth $415 million, and eight A340-660s, worth $1 billion.Emirates has signed a letter of intent with the American aircraft manufacturer to acquire 25 Boeing 777-200 and 300 aircraft. The planes will be delivered between 2004-10.The agreements make Emirates the largest customer in the world for the A380 and amongst the largest for the 777. When the expansion programme is complete, Emirates will have a fleet of around 100 airplanes.

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