Boeing B777-300ER – Emirates Airline
In 2015, IIB invested US$ 22.65 million to purchase and lease back of one Boeing B777-300ER Aircraft to Emirates Airlines for a non-cancellable lease period of 9 years. The investment yielded 11.62% per annum during its holding period. The total transaction value of to acquire the aircraft was around US$ 120 million which majority was financed through a bank loan.
During the same year, IIB announced the disposal of the aircraft resulting in more than 30% IRR for the bank. The exit was an easy decision for IIB to make because it offered much higher returns than IIB anticipated when we it entered into the transaction.