The two transactions are worth $367m
Abu Dhabi’s Etihad Airways has finalised $367m-worth of sale and lease-back transactions to local Sanad Aero Solutions and Ireland-headquartered Engine Lease Finance Corporation (ELF).
The two transactions will cover the financing of its 16 spare engines that are already in service, as well as seven future spare engine deliveries.
Sanad will purchase and lease back to Etihad Airways five GE90 and six Rolls Royce Trent 500 engines and ELF will purchase and lease back six Rolls Royce Trent 700 and six IAE V2500 engines.
Both transactions are for a 10-year operating lease term. The spare engines are for Etihad Airways entire fleet of passenger and cargo aircraft.
“These spare engine sales and lease-back transactions provide the airline with a long-term financing solution for its entire spare engine fleet, while mitigating residual value risk and providing competitive cost of ownership over the long term,” says James Hogan, president and chief executive officer of Etihad Airways.
Sanad provides purchase, leasing and management solutions for spare components and engines to commercial airlines. It is part of Abu Dhabi government controlled investment vehicle Mubadala Development Company.