Etihad Airways, the Abu Dhabi-based airline, has secured $400 million (£193 million) to finance the purchase of three Airbus aircraft, despite the soaring cost of debt.

The state-owned carrier announced that it has secured two loans to extend its fleet to 37 by the end of the year. The debt will be used to purchase three Airbus A340600s.
Etihad, which was founded four years ago, heralded the loan as a pioneering deal, combining local, regional and international financing.
Standard Chartered, the Bahrain-based Arab Banking Corporation and Abu Dhabi Commercial Bank are behind the larger loan of $250 million, which will finance two of the aircraft.
A third Airbus will be bought using $148 million of debt coordinated by Calyon, the international banking arm of Crédit Agricole, and provided by BNP Paribas-Capstar Partners, Calyon, Gulf International Bank and the National Bank of Abu Dhabi.
Two of the aircraft are already in service, while the third will be delivered next month.
James Rigney, Etihad’s chief financial officer, said that the deal showed the breadth of the group’s credit lines. “Our objective was to broaden the net to tap into European, regional and local banks here in Abu Dhabi.”
James Hogan, the chief executive, said: “In four short years Etihad has evolved from a start-up airline into a major player in the international aviation arena. It is pleasing that it now enjoys the credibility and confidence of the regional and international financial community to make a deal of this size and significance possible.”
Last year Etihad earned revenue of $1.5 billion.
Shayne Nelson, regional chief executive officer of Standard Chartered’s Middle East and North African business, said: “This is an innovative aircraft financing deal not only for Standard Chartered but also for Etihad Airways, our banking partners in this deal and the United Arab Emirates banking industry.”
The deal comes after the global credit crunch jeopardised Airbus’s attempt to raise £2.5 billion to finance a fleet of tankers for the RAF.
The $148 million loan will be financed using French tax leases, which Etihad said enabled the banks to “sharpen” their prices.
(Source: Time Online)