Emirates has reported that that the debut Eurobond issue for the airline is being launched at $500 million. The issue will be a Floating Rate Note (FRN) with a tenure of seven years and will pay a margin of 0.80 percent over six months USD Libor.
The issue will be listed in Luxembourg. This is the largest ever unrated Eurobond issue by an airline and also the largest ever unsecured issue by a corporation within the Gulf Cooperation Council (GCC), reported a press release.
According to Emirates, the response to the issue has been extremely positive and the air carrier has been able to achieve a wide geographical spread of investors, with over a quarter from Europe /Asia and over half from outside the United Arab Emirates (UAE).
The bond achieved a new source of funding for Emirates with around two thirds from new investors. The airline's initial target was $400 million through this bond issue but it increased the final amount to $500 million to satisfy investor demand.
The Joint Lead Managers of the issue are HSBC, Emirates Bank International, National Bank of Abu Dhabi and National Bank of Dubai. HSBC is acting as sole global coordinator of the issue.
The size and pricing of the issue have been finalized as a consequence of a book building exercise undertaken alongside a series of road shows and investor presentations made in London and the Middle East by senior members of the Emirates Management team. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
