HSBC Supports Emirates' Acquisition Of Airbus A350 Fleet Through Innovative JOLCO Financing

HSBC has been tasked with financing six Airbus A350-900 aircraft for Emirates Group. The bank has already completed financing for five of these planes through a Japanese Operating Lease with Call Option (JOLCO). This marks Emirates' return to the JOLCO market after six years, showcasing HSBC's expertise in asset financing. Financing for the last aircraft is still underway.

The transaction offers Emirates favourable pricing and efficient terms, allowing the airline to diversify its funding sources beyond traditional methods. This reflects HSBC's capability to link global capital with regional ambitions, building on a trusted partnership that has lasted over 40 years since the airline's inception.

To celebrate this milestone, H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline Group, met with Georges Elhedery, Group CEO of HSBC Holdings Plc. The meeting highlighted their shared growth over four decades. Present at the event were Samir Assaf, Chairman of HSBC Middle East Holdings, Abdulfattah Sharaf, Chairman of HSBC Bank Middle East Limited, Selim Kervanci, CEO of MENAT at HSBC, Mohamed Al Marzooqi, CEO of UAE at HSBC and Shaikha Almarri, Head of Banking in UAE at HSBC.

Executives from Emirates included Michael Doersam, Chief Financial and Group Services Officer; Nirmal Govindadas, Senior Vice President of Group Treasury and Risk Management; and Dhiraj Lulla, VP Group Treasury (Financing).

Mohamed Al Marzooqi stated: "Over the last 40 years, HSBC has supported Emirates’ journey from its very first aircraft to its position today as one of the world’s leading airlines. This latest financing demonstrates the strength of that relationship and our shared confidence in the UAE’s aviation sector. As we approach our 80th anniversary in the UAE next year, we remain committed to connecting local champions like Emirates with international capital and opportunity."

The Airbus A350-900 will join Emirates' fleet in November 2024. This modern widebody aircraft features advanced technologies and materials that improve fuel efficiency by 25%, reducing both operating costs and CO₂ emissions.

A Legacy of Innovation

Over four decades, HSBC and Emirates have collaborated on numerous pioneering projects. One notable achievement was the first Sukuk guaranteed by an Export Credit Agency (ECA), which was also the largest ECA-wrapped debt capital markets transaction in aviation at that time.

This ongoing collaboration between HSBC and Emirates underscores their commitment to innovation in aviation finance while supporting sustainable growth within the industry.

With inputs from WAM