Export credit agency market ‘used to finance Emirates and Etihad deliveries’

Date: 29/11/2009

Middle East airlines Emirates and Etihad Airways are reportedly considering the export credit agency (ECA) market to finance the delivery of new aircraft, according to a Zawya report.

Emirates used a capital markets bond guaranteed by US Export-Import Bank to finance the delivery of three new Boeing 777 aircraft delivered between July and September.

Senior vice-president of commercial treasury at Emirates, Brian Jeffery, told Emirates Business: “Emirates will continue to use export credit finance for future deliveries as one part of a diversified overall funding programme.”

Mr Jeffery said he thought the market for the paper was still large and easily sustainable in the report.

Etihad is also reporting it will look at ECA-backed options for its upcoming deliveries, as part of its eight-aircraft acquisition programme through 2010.

Chief financial officer James Rigney said: “Etihad Airways will consider ECA-linked capital market structures for these deliveries.”