News Column

Emirates secures $425 Islamic loan

August 12, 2014

Staff Report

Dubai: Emirates have secured a $425 million shariacompliant loan from a group of UAE banks to finance the acquisition of two Airbus A380 aircraft.

Abu Dhabi Islamic Bank (Adib), Commercial Bank of Dubai (CBD) and Dubai Islamic Bank (DIB) were the joint book runners and initial mandated lead arrangers in the transaction, Adib said in a statement on Tuesday.

Emirates used the loan to take delivery of its 50th A380 in Hamburg last month, according to Adib. The aircraft is scheduled to enter into service sometime in early August, Emirates previously said.

"This is a significant transaction for ADIB, which demonstrates our collaborative approach with other UAE banks, contributing to the growth of the local economy, and highlighting our strong position in the corporate banking sector," said Arif Usmani, Global Head of Wholesale Banking at Adib.

Emirates is the largest operator of the superjumbo A380 and have a further 90 on order. The airline's president, Tim Clark, has previously said he is interested in ordering more of the superjumbos if Airbus is able to manufacture a more fuel efficient "neo" version.

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Source: Gulf News (United Arab Emirates)

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