Dubai-based Emirates airline on 28 February signed a Eur 142.9 million ($156.8 million) financing agreement for the purchase of the first two of 17 Airbus A330-200s, becoming the first company in the Middle East to acquire long-term funding in the newly-launched European currency. The two aircraft are scheduled for delivery in March.

The 12-year operating lease has been arranged by Emirates Bank International and Deutsche Bank and is guaranteed by the UK's Export Credits Guarantee Department (ECGD), Germany's Hermes and France's Coface. Other participating banks include Kreditanstalt Fuer Wiederaufbau, DGZ, DekaBank-Deutsche Koummunalbank and Landesbank Schleswig-Holstein International. The loan carries interest of 45 basis points over Euribor.

Emirates' fleet upgrade and expansion programme will require more financing. Apart from the 17 A330-200s, the airline is expected to acquire two Boeing 777-3000s on operating leases by the end of 1999. It also has firm orders on six A340-200s, scheduled for delivery between 2002-03, with an option on four Boeing 777s, six A330-200s and 10 A340-500s.