Union National Bank (UNB) has announced the successful completion of a 12-year aircraft financing term loan facility for the acquisition of an Airbus A380 aircraft by Baz Aircraft Leasing One, in which it acted as mandated lead arranger.

The aircraft is leased to the UAE’s national carrier Abu Dhabi-based Etihad Airways, according to a statement.

It added: "The term loan facility forms part of a financing package extended to Etihad in connection with the sale and leaseback of two Airbus A380 arranged by Natixis S.A. The financing package also included a seven-year standby letter of credit facility granted by UNB in relation to the two aircraft."

Baz Aircraft Leasing One is the first special purpose company (SPC) to be incorporated in the Abu Dhabi Global Markets (ADGM) for aircraft financing.

"The new club deal for Baz Aircraft Leasing One reinforces the existing relationship between UNB and Etihad and marks some major milestones - the first Airbus A380 aircraft financing transaction between UNB and Etihad and first aircraft financing SPC incorporated at the ADGM," stated Hany Youssef, executive vice president for corporate & commercial business at UNB.

"As Etihad expands its global franchise in support of the UAE’s drive to become a global aviation hub, UNB looks forward to collaborating with Etihad to help propel this expansion," he added.