Qatar Airways secures $700m financing deals for 777s

A $350m, 12-year finance lease deal to purchase two new Boeing 777 aircraft – a 777-300ER and a 777-200LR version – followed an agreement with five leading international banks, reported Gulf Times .

Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Deutsche Bank AG, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation Europe Limited struck the deal with the Qatari flag carrier.

Both aircraft are due for delivery before the end of November this year.

Following a highly successful $500m aircraft financing transaction for Qatar Airways arranged by the same group of banks last year, the group was keen to work again with the airline on a follow on transaction.

The innovative structure ensures that the deal finances 100% of the purchase cost of the aircraft, achieving a loan to aircraft value profile that would meet the requirements of international aviation banks.

Standard Chartered Bank acted as facility agent and security trustee.
Qatar Airways said the closing of this deal “is a testament to the close co-operation” it enjoyed with the lending group.

Qatar Airways chief Akbar al-Baker said: “In these difficult times for the banking sector, I am very pleased to see this group of experienced aviation banks regrouping to support Qatar Airways once again.

“This clearly demonstrates the finance community’s continued support for Qatar Airways as it forges ahead with robust growth at a time when the rest of the airline industry is consolidating. I thank our partners for their ongoing support and commitment to Qatar Airways which is maintaining its growth plans with vigour.”

Qatar Airways struck a second deal, also worth $350m, for two other 777s.

The airline appointed Calyon and Natixis Transport Finance as joint arrangers for the financing of one Boeing 777-300ER scheduled for delivery in October and one Boeing 777-200LR due in December.

The transaction, an up-to-12-year, two-tranche finance lease structure, was designed to attract key asset players, as well as banks which relied on creditworthiness of the airline. The financing has been underwritten and financed by a pool of four banks: Calyon, Credit Suisse, Helaba, and Natixis Transport Finance.

Al-Baker said: “I am very pleased that not only is Qatar Airways continuing to attract financing from its long-term relationship banks such as Calyon and Natixis Transport Finance, but also attracting support from new banks such as Credit Suisse and Helaba.”

Successfully closed against a backdrop of ongoing financial crisis in the global banking sector, the transactions demonstrate Qatar Airways’ ability to attract financing from leading aviation banks, the airline said.