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Biz News Korea(Eng)
Woori Bank to take part in aircraft finance in Middle East
- Collected
- 2016.03.18
- Distributed
- 2016.03.22
- Source
- Go Direct
According to the banking industry sources on Wednesday, Woori Bank has recently decided to participate in the aircraft finance of state-run Etihad Airways, the second-largest airline of the United Arab Emirates (UAE). The bank will lend $70 million with a maturity of four and half years to Etihad Airways, taking six used passenger carriers bought by the airline as collateral. The total aircraft finance amounts to $165 million (about 197 billion won), joined by a local bank in the UAE besides Woori Bank.
Etihad Airways was the world’s sixth largest airline as of 2015 according to evaluation by Skytrax, a UK-based aviation rating agency. The state-run airline is an A-grade airline evaluated by Fitch, a global credit evaluation company. The Korean bank is expected to visit the airline within this month to check airplanes and grant a loan.
Aircraft finance is a structured financing instrument in which an airline borrows money from a financial company and repays the principal and interest with profits from the operation of airplanes. Due to limited investment chances in the local market, Woori Bank has decided to find investment abroad, an unnamed official from the bank.
By Park Joon-hyung
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