Airline mandates bank to raise financing for two Boeing 777s
Dubai’s Emirates Airline has appointed France’s BNP Paribas to arrange a loan of $289m for the purchase of two Boeing 777-300ER planes.
The deal will finance the acquisition of the two planes, one of which is scheduled for delivery to the airline later in 2009, and the other in 2010.
The bank said the financing would involve a facility backed by export credit agency Export-Import Bank of the US (US Ex-Im). The mandate could also involve the issuance of a bond, which would also carry a US Ex-Im guarantee.
The deal is the latest sign that Dubai-based corporates are trying to return to the capital markets. Dubai Civil Aviation Authority is currently in talks with banks about a new capital markets deal to help it refinance a $1bn sukuk (Islamic bond), which matures in November.
Dubai International Capital, an investment arm of Dubai Holding, is also looking to raise $550m through a syndicated loan (MEED 18:10:09).
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