Emirates airline getting a taste for sukuk
Emirates airline is planning another sukuk sale, its second this year
Click here to add Abu Dhabi Commercial Bank as an alert
Disable alert for Abu Dhabi Commercial Bank,
Click here to add Abu Dhabi Islamic Bank as an alert
Disable alert for Abu Dhabi Islamic Bank,
Click here to add Citibank as an alert
Disable alert for Citibank,
Click here to add Citigroup as an alert
Disable alert for Citigroup,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Dubai Islamic Bank as an alert
Disable alert for Dubai Islamic Bank,
Click here to add Emirates NBD Capital as an alert
Disable alert for Emirates NBD Capital,
Click here to add Etihad Airways as an alert
Disable alert for Etihad Airways,
Click here to add Geneva as an alert
Disable alert for Geneva,
Click here to add James Hogan as an alert
Disable alert for James Hogan,
Click here to add London as an alert
Disable alert for London,
Click here to add New York as an alert
Disable alert for New York,
Click here to add Peter Morris as an alert
Disable alert for Peter Morris,
Click here to add Standard Chartered Bank as an alert
Disable alert for Standard Chartered Bank,
Click here to add Zürich as an alert
Disable alert for Zürich
In what would be its second bond sale this year, Emirates has mandated banks to arrange a potential dollar-denominated, benchmark bond [or sukuk] sale subject to market conditions, according to lead arrangers Citibank and Standard Chartered Bank.
Confirming the same, Emirates said in a statement to Gulf News yesterday: “Emirates has mandated Citigroup and Standard Chartered Bank as Joint Global Coordinators and Joint Lead Managers, together with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates NBD Capital as Joint Lead Managers, to arrange a series of fixed income investor meetings in the UAE and Europe commencing on March 7,” adding that a USD Regulation S Sukuk benchmark offering may follow subject to market conditions.
A benchmark-sized bond is typically $500 million.
The March 7 meeting in Dubai and Abu Dhabi will reportedly be followed by Geneva and Zurich on March 8 and closing in London on March 11.
Emirates in late January issued a $750 million, 12-year amortising bond.
The world’s largest airline by international traffic, said recently it expects an 18-20 per cent increase in sales this year, besides a 12 per cent increase in the number of passengers, as it expands its operations in Asia.
With liquidity trickling back into the market, airlines have started to make a comeback for fund-raising.
Etihad Airways, for instance, said on Tuesday it is briefing major institutions at financial roadshows in New York and London. The Abu Dhabi-based carrier has attracted support from over 60 institutions globally, which now provide over $7.1 billion in cumulative funding for the airline’s expansion.
While Etihad did not specify if it’s actively looking to raise funds, its President and CEO, James Hogan, said in statement, the airline was committed to a “diversified finance strategy”, including traditional and emerging finance mechanisms across financial institutions in different regions.
Etihad uses a variety of funding forms, including commercial debt, Islamic structures, operating leases, tax leases, and European and US export credit agency supported financing, and the funding is used to grow its fleet.
According to Peter Morris, chief economist at aviation consultancy, Ascend, with new aircraft deliveries and robust finances of the key Gulf airlines, the only problem they have may be deciding between competing financial instruments. “With global bond rates being exceptionally low, these airlines are in a position to take advantage, with their financial credibility boosted by their continued expansion and generally improving profitability,” he said.
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge
- Etihad Holidays’ Gets in Winter Olympic Spirit with this Season’s Ski Packages
- Emirates NBD becomes a global leader in arranging USD Sukuk
- It's going round in circles of who is bombing whom in the Middle East
- Etihad Airways finance roadshows attract leading bankers and financiers in New York and London
- Epic threesome! James Blunt, John Legend, and Sting for the win at Dubai Jazz Festival