Emirates plans new bond

24 April 2006
Dubai-based carrier Emirates has mandated Emirates Bank, HSBC and National Bank of Dubai to arrange an estimated AED 1,800 million ($490 million) bond issue. The paper is due to come to market imminently to replace paper maturing in June.

The tenor of the AED 1,500 million ($409 million) maturing bond, which was the first dirham-denominated issue by a local corporate, is five years. However, it is understood that the new bond could have a longer maturity. Emirates stretched the tenor on its debut sukuk issue in 2005 to seven years (MEED 27:5:05).

The airline's first bond in 2001, arranged by HSBC and National Bank of Abu Dhabi, was priced at 70 basis points over the Emirates inter-bank offered rate (Ebor) and was oversubscribed more than two-and-a-half times (MEED 13:7:01).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications