NBAD, Boeing strengthen partnership with new aircraft financing agreement

Press release

Published March 4th, 2015 - 09:11 GMT

Mark Yassin Co-Head of Wholesale Banking and Senior Managing Director of Global Banking at NBAD and Tim Myers, president of Boeing Capital Corporation, Boeing’s financing and leasing unit

The National Bank of Abu Dhabi (NBAD) and aircraft manufacturer Boeing [NYSE: BA] have extended an agreement which has seen the two organizations work successfully together to develop aircraft financing and leasing opportunities in the Middle East market over the past three years.

Under the memorandum of understanding, NBAD and Boeing will work together to increase opportunities for financial institutions in the UAE and the Middle East region involving commercial aircraft.

“Boeing has enduring partnerships in the Middle East region and the relationship we have built with NBAD is delivering real value to the region in terms of increasing opportunities for local participation in aircraft financing,” said Tim Myers, president of Boeing Capital Corporation, Boeing’s financing and leasing unit.

“As a result of the agreement between NBAD and Boeing we have held a number of seminars and development sessions, including the region’s first Chief Risk Officer Summit for the region’s financial institutions in 2012.

Mr. Myers said locally-generated aircraft financing has grown significantly in recent years and now supports approximately half of the Middle East’s commercial aircraft deliveries.

“Boeing’s extensive and insightful perspectives in aircraft financing coupled with many years of transaction execution in this market ensures that this partnership continues to add value to not only the airlines in the region, but also to the financial institutions seeking to extend their involvement in the sector,” said Vasgen Edwards, Managing Director & Global Head of Aviation and Transport at NBAD.

Boeing’s latest commercial aviation market outlook forecasts demand for 2,950 new airplanes for the Middle East region over the next 20 years, worth an estimated US$650 billion. While almost one-third of that demand – 900 airplanes – will replace today's fleets, two-thirds of the demand is expected to be driven by the rapid fleet expansion in the region.

“Boeing has been working with NBAD for several years now and our partnership has proven to be very successful, making a positive impact on the aviation industry,” said Jeffrey Johnson, President, Boeing Middle East. “We continues to work closely with leading financial institutions in the UAE and the Middle East to identify best finance solutions for our customers.”.

The memorandum of understanding between NBAD and Boeing was the Middle East’s first working together agreement for aircraft financing and leasing cooperation when it was originally signed in 2012.

The non-exclusive agreement is aimed at creating opportunities for NBAD to advise, arrange and supply financing to support Boeing new-aircraft sales and used-aircraft remarketing in the region, with Boeing engaging with the bank in joint projects, training and issues advocacy.

Background Information

Boeing

Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners, defense, space and security systems, and service provider of aftermarket support. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.