Emirates NBD has entered into a financing agreement for two aircraft valued at $350 million (1.28 billion AED) with Emirates Airline. According to a press release issued yesterday, this financing facility will support the airline’s acquisition of two Boeing 777-200LRF long-range cargo planes, aiding the strategy of “Emirates SkyCargo” to enhance its fleet and promote growth while reinforcing Dubai and the UAE’s position as a global hub for trade and logistics.
A Transformative Moment
Commenting on the agreement, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Civil Aviation Authority and Chief Executive of Emirates Airline and Group, stated on the X platform: “Today marks a significant turning point with the signing of the agreement between Emirates NBD and Emirates Airline for the financing of the purchase of two new cargo aircraft.”
He highlighted that this collaboration between two of our nation’s major institutions would unlock wider opportunities to support the future of the aviation and logistics sectors, enhancing the UAE’s status as a global trade center and aligning with the goals of Dubai’s Economic Agenda D33. This demonstrates our commitment to sustainable growth that creates long-term value for our economy and society and contributes to the UAE’s economic diversification efforts and GDP growth.
A Unique Financing Partnership
This transaction represents the first dedicated mortgage-style financing partnership for cargo aircraft between Emirates NBD and Emirates Airline, secured through a competitive process, and it extends the long-standing partnership between the two entities.
For Emirates Airline, this marks the first instance of utilizing a direct aircraft financing structure resembling a mortgage, without the need to establish a traditional special purpose vehicle, showcasing the airline’s strategic shift towards more flexible and streamlined financing methods.
Ahmed Al Qassim, Head of Business Banking at Emirates NBD, remarked on this notable financing for Emirates Airline, reflecting the bank’s ongoing commitment to supporting key sectors that contribute to the UAE’s economic vision.
Meanwhile, Michael Doursem, Group Finance and Services Head at Emirates Group, emphasized the strong financing track record of Emirates Airline and its access to a wide range of funding sources. He reiterated the focus on developing innovative strategies for long-term financing, noting that this crucial deal with Emirates NBD represents the first aircraft-collateralized financing arrangement with the bank.