Qatar Airways signs Airbus financing agreements

10 July 2003
Qatar Airwayson 10 July announced two new financing agreements, to fund acquisitions under the $5,100 million deal struck in June for up to 32 aircraft from Toulouse-based European consortium Airbus, doubling the Gulf carrier's fleet.

HSBC Bank Middle East will arrange the long-term financing of two A321 aircraft, structured as a finance lease with 85 per cent of funding coming from European Export Credit Agencies and the remainder coming in the form of a commercial loan. The A321s will be deployed on Qatar Airways' regional and Asian routes. They are scheduled for delivery in December 2003 and April 2004.

The second agreement is with France's Credit Lyonnaisfor the long-term financing of two A320 planes, due to be delivered in March and October 2004. Again 85 per cent of the financing will be provided by export credit agencies and the remainder from commercial loans.

On 7 July, Qatar Airways announced a similar agreement for two more A320s with France's Natexis Banques Populaires, structured in the same way. UK-based Prime Aviationadvised on the structuring of all three deals.

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