DOHA: Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Deutsche Bank AG, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation Europe Ltd. have secured a $500 million 12-year finance lease for the purchase of three Boeing 777 aircraft by Qatar Airways with a scheduled delivery by the end of 2008.
“This financial arrangement shows the confidence international lenders have in Qatar Airways as an airline with a strong vision to grow its international network and strengthen its market presence,” Qatar Airways Chief Executive Officer Akbar Al-Baker said yesterday.
“Qatar Airways has built up a strong reputation in the international marketplace with a solid long-term growth strategy that can weather any crisis. Our commitment to provide the traveling public with greater choice through more frequencies and more routes is unprecedented as we take delivery of brand new aircraft to help fulfill our targets,” he added.
The innovative financing structure ensures that the deal financed — 100 percent of the purchase cost of the aircraft — achieves a loan to aircraft value profile that would meet the requirements of international aviation finance banks while also appealing to regional lenders. The transaction also addressed delays in delivery of the aircraft due to the recent industrial action at Boeing.
Standard Chartered Bank acted as facility agent and security trustee for the deal.
The closing of this deal at a time of extreme liquidity stress in the international banking markets was a testament to close cooperation between Qatar Airways and the lending group. “It demonstrates that Qatar Airways is enjoying the trust of large financial institutions, which have shown their commitment to supporting the airline’s long-term growth strategy,” Al-Baker added.
Qatar Airways’ Boeing 777-300 Extended Range aircraft features 335 seats in a two-class configuration of 42 seats in Business and 293 in Economy. The airline currently has four Boeing 777s in its fleet.
