Airline to issue benchmark sukuk
Abu Dhabis Etihad Airways is pricing an Islamic bond, or sukuk, issuance this week that will reach at least $500m, according to Reuters.
The five-year sukuk is expected to price at just above 200 basis points above midswaps.
The arrangers are the UKs HSBC, the US JP Morgan and National Bank of Abu Dhabi, Reuters adds. The bookrunners also include Abu Dhabi Islamic Bank, Dubai Islamic Banks and local First Gulf Bank.
Etihad and its partner airlines issued a $700m five-year bond in September 2015. It had a coupon rate of 6.875 per cent. The funds were used for capital expenditure and investment in fleets, as well refinancing, depending on each airlines needs.
Etihad recorded $103m in net profits in 2015, and is rated A stable by Fitch thanks to its strong links to the Abu Dhabi government.
You might also like...
McDermott completes financial restructuring exercise
28 March 2024
Region heads for hotel boom
28 March 2024
Lowest bidders emerge for Kuwait housing project
28 March 2024
Redcon wins Red Sea Triple Bay infrastructure deal
28 March 2024
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.