Etihad approaches banks for over US$500 million for Boeing deliveries: sources

Etihad approaches banks for over US$500 million for Boeing deliveries: sources

Abu Dhabi’s Etihad Airways has approached banks to raise over US$500 million to finance four Boeing 787 Dreamliners it previously ordered, two sources familiar with the matter said.

Etihad Boeing 787 Dreamliner aircraft takes off from Zurich Airport
An Etihad Boeing 787-9 Dreamliner aircraft takes off from Zurich Airport January 9, 2018. REUTERS/Arnd Wiegmann

DUBAI: Abu Dhabi’s Etihad Airways has approached banks to raise over US$500 million to finance four Boeing 787 Dreamliners it previously ordered, two sources familiar with the matter said.

The state carrier sent a request for proposals to banks last week for the financing, which is likely to be provided through bilateral loans or loans involving a small club of lenders, they said.

Etihad declined to comment.

It is common for airlines to approach banks to help finance aircraft deliveries.

Loans for 787s generally have a maturity of 12 years, the sources said, adding that the financing would likely be provided by Abu Dhabi banks.

Etihad operates a fleet of 26 787s and had a further 45 still to be delivered as of December 2018, according to Boeing's website.

(Additional reporting by Alexander Cornwell; editing by Emelia Sithole-Matarise)

Source: Reuters

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