Emirates said to be raising as much as $2.5b for A380s

Emirates is seeking to raise as much as $2.5b to fund the purchase of Airbus Group SE A380 superjumbos, according to two people with knowledge of the deal. The Dubai government-owned carrier plans an 18-month bridge loan priced at about 135 basis points over the London Interbank Offered Rate, said the people, asking not to be identified because the information is private. The bridge facility will later be converted to a 12-year loan to fund about 10 A380s, which will be delivered before the year end, one of the people said.<br/>Emirates, which has built Dubai as a hub for transcontinental traffic from the U.S and Europe to Asia, will take delivery of 21 A380s in the fiscal year through March 2017. Profit surged 50% in the financial year ended March 31 to 8.2b dirhams ($2.2b) as it carried more passengers and benefited from a decline in oil prices. The funding for the planes is for a combination of operating and financial leases, according to one of the people. The airline is seeking short-term financing due to the lack of funding from the European export credit agency, although that is expected to become available over the next six to 12 months, said the people. ECA-backed funding will replace the bridge facility when it’s available and some of the lenders will be repaid, according to the people.<br/>