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Waha Capital Closes Dh6.7b Military Deal

In the first stage of this mega deal, to be followed by more announcements in the future, eight European and North American banks have sanctioned Dh6.7 billion, in a first of its kind financing arrangement to facilitate the UAE Armed Forces’ logistics, airlift and humanitarian aid programmes, Hussein Jassim Al Nowais, Chairman of Waha Capital, said on Tuesday at a media briefing.

“The financial backing is testimony to the confidence of the international banks in the strength of the UAE economy and financial credibility of the Abu Dhabi emirate,” Al Nowais said.

“The 15-year maturity deal has been concluded at very competitive interest rates,” the chairman added.

On February 24 last year, during the International Defence Exhibition, or IDEX-2009, the UAE’s Army General Headquarters, or GHQ, mandated Waha Capital to arrange and manage a financing programme to purchase military transport aircraft worth 
Dh11 billion.

Al Nowais said that the deal would finance nine aircraft including three Airbus A330-200 multi-role and tanker transport aircraft that have been acquired for D4.4 billion as well as six Boeing C-17 A Globemaster III aircraft valued at Dh2.3 billion.

The aircraft are scheduled for delivery over the next three years — four would be handed over in 2011 and the rest in 2012.

“Closing a deal of this size in the current financial circumstance,” he said, was a “challenge”. “It clearly reflects the company’s investment strategy,” the chairman said.

The deal was closed within a record timeframe by the combined Waha Capital and GHQ team.

This project is expected to accelerate the sustainable growth of Waha Capital and its financial performance and will add value for shareholders 
and investors.

Waha Capital recorded a net income of Dh353 million and a net profit of Dh22.6 million for the first nine months, ending September 30, 2009 .

· haseebhaider@khaleejtimes.com