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
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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 4, 2015
UAE. July data suggested that the UAE's non-oil private sector regained some of the growth momentum that was lost at the end of the second quarter; Output and new orders both rose at sharper rates, contributing to a robust overall improvement in business conditions.
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date:Posted: August 4, 2015
SAUDI ARABIA. Stronger growth of the sector as a whole was mainly driven by sharper expansions in both output and new orders, while purchasing activity also rose more quickly; However, data for employment bucked the general trend, as the rate of hiring eased to a 14-month low.
UAE. July data suggested that the UAE's non-oil private sector regained some of the growth momentum that was lost at the end of the second quarter; Output and new orders both rose at sharper rates, contributing to a robust overall improvement in business conditions.
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