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NBAD loans Etihad $288m to buy aircraft

ABU DHABI — National Bank of Abu Dhabi (NBAD) and Etihad Airways have signed the terms of a $288 million loan agreement that will be used to finance the airline's acquisition of four new Airbus 330-200 aircraft.

NBAD, as a sole arranger, will provide financing of the loan facility which is structured as a lease with repayment spread over 12 years. NBAD, the UAE's largest bank by assets, expects to syndicate the financing facility during the first quarter of 2008 through successful partnerships with local and international banks.

All four aircraft have been received by Etihad and are in service. The first of the four A330-200 aircraft was delivered by Airbus in June 2007, followed by the second and third aircraft in September and the fourth in mid-October 2007.

Michael Tomalin, NBAD's chief executive said: "NBAD is proud for entirely underwriting in full this important transaction and playing a major role in Etihad's continued growth in fleet size which also demonstrates strengthening of ties between the UAE's top lender and the national airline of the UAE."

James Hogan, chief executive, Etihad Airways, said: "These are exciting times for Etihad as the airline continues to grow and establish itself on the global stage. It is extremely gratifying that a leading bank such as NBAD shares our vision."