Abu Dhabi-based Etihad Airways has extended its relationship with Sanad Aero Solutions with a 10-year agreement for the sale and lease-back of key component spares.

Under the deal Sanad, which is wholly owned by Mubadala, Abu Dhabi’s government-backed investment and development company, will buy and lease back to Etihad key rotable component spares, including engines.

The deal, which is valued at more than $125 million, builds upon a 2011 sale-and-leaseback deal between the companies to finance 11 spare aircraft engines—five General Electric GE 90s and six Rolls-Royce Trent 500s.

“This new transaction provides the airline with a long-term financing solution for many of its key component spares while mitigating residual value risk and providing competitive cost of ownership over the long term,” James Hogan, Etihad’s president and CEO said. It “also drives value for both Sanad and Etihad Airways, and will ensure that the United Arab Emirates’ reputation as an aerospace and aviation center of excellence continues to grow.”

Sanad said that since its 2010 launch it has grown its portfolio to more than $650 million in assets under management, supporting several major carriers including Etihad, Virgin Australia, Finnair, Air Berlin and others.