Etihad wins Deal of the Year for first ECA transactions
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Etihad wins Deal of the Year for first ECA transactions
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Category: Worldwide - Exclusive experiences
- Rewards
This is a press release selected by our editorial committee and published online for free on 2010-04-19
Etihad Airways, the national airline of the United Arab Emirates, was awarded one of the Global Trade Review’s ‘2009 Deals of the Year’, in a ceremony in London last night. The airline received the award for its first European Export Credit Agency (ECA) term loan facility, worth USD $123m in support of aircraft acquisitions.
The transaction, signed in August last year, was arranged, facilitated and financed by HSBC and is to be used to part finance an Airbus A340-600 aircraft. It was the first of four European ECA transactions signed by Etihad in the past year.
Commenting on the award, Etihad Airways’ Chief Executive Officer, James Hogan, said: “This award is testament to the success of Etihad’s innovative and broad-based approach to funding through a number of initiatives including export credit financing, commercial financing and Islamic financing structures.
“I believe we enjoy the confidence of the international and regional finance communities and are well positioned to finance our extensive fleet expansion and renewal program over the next 12 years.”
The ‘Deal of the Year’ transaction was covered by the UK’s ECA, ECGD, and then reinsured by France’s Coface and Euler Hermes in Germany. The payment schedule for the transaction is 12 years from the date of delivery by way of 48 equal quarterly instalments on an annuity / mortgage-style basis.
“Our Finance and Treasury team is widely respected in the financial markets, especially in the aviation finance markets, and this is the fourth award the Etihad treasury team has received in the past three years.”
In addition to the initial ECA deal, Etihad signed three other separate European ECA transactions over the past year including: a second ECA facility arranged by HSBC worth USD $95m in December 2009, a USD $111m facility arranged and financed by Landesbank Baden-Wuttemberg in September 2009, and a USD $95m agreement arranged and financed by The Bank of Tokyo Mitsubishi in January this year.
The Global Trade Review awards were held at the Hilton Tower Bridge on April 15, 2010 in London. The awards recognise key banks, credit insurers, corporates, traders, law firms, brokers and consultants and are held annually.
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