Emirates repays US$550 million bond, looks at Islamic debt for future financing
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Mon June 18, 2012 5:25 pm

UAE. Emirates, the world's largest airline by international traffic, will look at Islamic debt for future financing after paying a US$550 million sukuk.

"With the Eurozone debt crisis ongoing it’s likely that Islamic financing, with its large pool of liquidity, will play an increasingly important role for us moving forward,” Chairman Sheikh Ahmed bin Saeed Al Maktoum said in a statement today. “The repayment of our first-ever sukuk bond is part of Emirates’ varied financing strategy and reflects our robust financial position.”

Emirates is building the world’s largest fleet of Airbus superjumbo jets to establish Dubai as a long-haul travel hub and win passengers from Air France-KLM (AF) and Deutsche Lufthansa AG.

The Dubai-based airline is one of the biggest buyers of Airbus SAS A380 superjumbos and the Boeing 777s, and in November signed a deal valued at US$18 billion with Boeing Co. (BA)

The carrier repaid the seven-year Islamic bond, listed on the Luxembourg Stock Exchange, in full on its maturity date today. The floating bond last traded at 99.36 cents on the dollar on June 15, according to Bloomberg data. The yield on the airline’s 5.125 percent bond maturing June 2016 fell 16 basis points last week to 4.46%.

Earlier this year, Emirates raised AED1.9 billion (US$517 million) from an Islamic facility for the purchase of three aircraft. The 12-year loan will finance the purchase of planes including Boeing’s 777-300ERs and Airbus’s A380.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: August 28, 2014
UAE. The Saudi equity market index hits a 6 year high; Fed Chief Yellen’s commentary at Jackson Hole summit seen as constructive; India in a sweet spot for emerging market debt investors.
date:Posted: August 28, 2014
INTERNATIONAL. The second government shake-up in just five months rocked a country already battered by a jobless rate of more than 10%, high taxes and a budget deficit that stubbornly refuses to come down to the EU ceiling of 3% of GDP.
date:Posted: August 26, 2014
INTERNATIONAL. Is it time to stop thinking about stabilizing Syria and Iraq and start thinking of a new dynamic outside of the artificial states that no longer function? To do this, we need to go back to Lebanon, the first state that disintegrated and the first place where clans took control of their own destiny.
UAE. Dubai World, the state-owned company at the center of the emirate's 2009 financial crisis, reached a deal with its main creditors to extend the repayment of US$10.3 billion of debt, according to people with knowledge of the matter.
dhgate