The latest financing is Emirates’ first to be yen-denominated and fits in with the airline’s strategy of diversifying its funding sources (MEED 9:5:03).

In October, a Eur 195 million ($226 million) lease financing agreement was signed for another two A340-500s, lead arranged by Credit Agricole Indosuezand covered by the same export credit agencies (MEED 31:10:03). A further Islamically-structured aircraft lease is in the pipeline, to be lead arranged by Dubai Islamic Bankwith involvement from Abu Dhabi Islamic Bank.

A second bond issue is also understood to be under discussion. In 2001, Emirates launched a local currency-denominated bond priced at 70 basis points over Emirates interbank offered rate (Ebor), which was well received (MEED 13:7:01).

The need to diversify funding has been created by an ambitious fleet expansion programme. The airline has 45 aircraft on its order book and has agreements with Airbus and The Boeing Company of the US worth a total of $26,000 million (MEED 16:6:03).