Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.

Publish Date : 08-Nov-2013

An agreement for $228 million is signed by flydubai with five regional and international banks to finance six new Boeing 737-800 aircraft.

This financing is for two newly delivered aircraft, one more slated for delivery by the end of the year and three slated to be delivered in the second half of 2014.

Norddeutsche Landesbank Girozentrale, Crédit Agricole Corporate & Investment Bank, Gulf International Bank, PK AirFinance Japan (GE Capital Aviation Services) and Landesbank Hessen-Thüringen Girozentrale are the five banks which arranged the financing.

The commercial bank funding is planned as a finance lease with quarterly loan repayments in excess of a 10 to 12 year term. This was the result of an application for a proposal (RFP) given out by flydubai for its 2013 and 2014 aircraft funding requirements. The funding is pleasingly priced to the market with an chosen for the interest rate to be floating or fixed during the term of the loan.

flydubai's Chief Executive Officer, Ghaith Al Ghaith, said, "In 2012, our third year of operation, we started to diversify our sources of funding. The enthusiastic response to our RFP to source commercial funding is a positive endorsement of our strategy for continuing growth and our track record. We thank the banks for their support and we look forward to strengthening our relationship with them in the future."

Mukesh Sodani, flydubai's Chief Financial Officer, added, "We are delighted to have secured commercial funding to finance the acquisition of six new aircraft. Until we started our strategy to diversify our funding sources our aircraft were predominantly financed with operating lessor partners on sale and leaseback structures. Our first step towards diversifying our funding sources was for three Boeing 737-800 aircraft financed through a loan agreement with Export-Import Bank (Ex-Im Bank). With today's announcement, we have successfully financed the acquisition of 42 aircraft to date, out of our initial order of 50 aircraft placed with Boeing."

Go to previous page