Emirates NBD inked a USD 350 mn financing agreement with Emirates Airlines for two Boeing 777-200 long range freighter aircraft, according to a statement published on Thursday. The mortgage-style facility will support the delivery of the carriers as well as Emirates’ plans to expand its SkyCargo arm.

REMEMBER- Emirates to expand cargo fleet: Emirates ordered five additional Boeing 777 freighters back in October last year — originally set for delivery in 2025-2026, bringing its total freighter orderbook to 21. The airline is coping with industry-wide supply chain disruptions by earmarking USD 5 bn toward retrofitting its existing aircraft. Emirates Skycargo is slated to double its existing fleet of 11 units to 21 production-built Boeing 777s by December 2026.

A landmark agreement: The facility is a milestone for Emirates NBD — marking the bank’s first aircraft dedicated funding partnership. For Emirates, it will also be the first time the carrier opts for a direct, mortgage-style financing structure, barring a traditional offshore special purpose company setup.

This isn’t Emirates’ first rodeo with banks: Emirates tapped HSBC back in March as its sole senior arranger and original lender to finance the purchase of four additional Airbus A350-900 jets. This marks the airline’s return to the Japanese operating lease with call option (Jolco) market.

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