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).
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