Qatar Airways Gets Loans to Buy Boeings

Qatar Airways has secured two loans worth US$700 million to buy four new Boeing 777 aircraft due for delivery in 2009. A US$350 million, 12-year finance lease deal to purchase two new Boeing 777 aircraft – a 777-300ER and a 777-200LR version – followed an agreement with five leading international banks. Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Deutsche Bank AG, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation Europe Limited struck the deal. One Boeing 777-300 Extended Range aircraft is scheduled for delivery this month and another 777-200 Long Range version is due to be delivered in November 2009. Following a highly successful US$500 million aircraft financing transaction for Qatar Airways arranged by the same group of banks in 2008, the group was keen to work again with the airline on a follow on transaction. The innovative structure ensures that the deal finances 100% of the purchase cost of the aircraft, achieving a loan to aircraft value profile that would meet the requirements of international aviation banks. - Gulf Times