Emirates NBD has signed a USD 350 million aircraft financing agreement with Emirates Airline to support the delivery of two new Boeing 777-200LRF freighter aircraft, marking a key development in the airline’s fleet expansion strategy.
Support for fleet growth
The financing facility will directly back the growth of Emirates SkyCargo, reinforcing Dubai’s position as a global hub for trade and logistics. The transaction is the first mortgage-style freighter financing between the two entities, secured following a competitive selection process.
“This landmark financing for Emirates Airline demonstrates Emirates NBD’s continued commitment to supporting the core sectors that drive the UAE’s economic vision,” said Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD.
“We are pleased to close this transaction while contributing to the UAE’s growing standing as a global trade and logistics hub.”
Shift to direct financing
The deal also marks a strategic shift for Emirates, as it uses a direct aircraft mortgage financing structure without the traditional offshore Special Purpose Company (SPC). This streamlined approach provides the airline with more operational control and cost efficiency.
“Emirates has a robust financing track record and proven ability to access a wide range of funding avenues,” said Michael Doersam, Chief Financial & Group Services Officer, Emirates Group. “This milestone transaction with Emirates NBD represents our first financing secured against an aircraft with the bank… It also supports D33’s vision by strengthening and scaling up the airline’s capacity and connectivity to further optimise trade flows.”
For Emirates NBD, the transaction expands its presence in the aviation finance sector and supports the UAE’s long-term economic goals, including diversification and global trade facilitation. The agreement also builds on the long-standing relationship between Emirates NBD and Emirates Airline.
tanvir@dubainewsweek.com
