Home / Emirates doubles its bond issue to Dhs 1.5 billion

Emirates doubles its bond issue to Dhs 1.5 billion

Emirates, the UAE airline, has doubled the initial launch amount of its Dhs 750 million bond to Dhs 1.5 billion as a result of being oversubscribed by more than two and half times.

Emirates, the UAE airline, has doubled the initial launch amount of its Dhs 750 million bond to Dhs 1.5 billion as a result of being oversubscribed by more than two and half times.

HH Sheikh Ahmed bin Saeed Al-Maktoum, the chairman of Emirates, said, “We are delighted that the Emirates Bond issue has had such a strong response from the UAE financial community and it is a big vote of confidence in Emirates. The bond marks a historic development for the financial markets in the UAE and we are grateful to the investors and financial institutions for their continued support and confidence in Emirates.”

The floating rate bond, has a 5-year maturity, a minimum subscription of Dhs 5 million, and will yield a semi-annual interest rate of 70 basis points. Underwritten and managed by HSBC Bank Middle East, National Bank of Abu Dhabi, Emirates Bank Group and National Bank of Dubai it is the first bond issued on the Dubai Financial Market by a local entity. Emirates Airlines, which has substantial debt, intends to finance through institutional and professional investors, its strategic objectives for growth and expansion; including the acquisition of new aircraft.

Commenting on the bond issuing, Dermot Mannion, finance chief director of Emirates said, “This represents a further diversification of our funding sources. The purpose is to provide Emirates with flexibility in the midst of our growth and expansion.” When asked if there were plans to take the airline public, Sheikh Ahmed told ITP.net, “there is no current decision to go public, but we hope to one day, perhaps soon.”

Trading will be initiated on 11 July, and investors will be able to trade the floating rate notes in the secondary market through exchange brokers at multiples of Dhs 100,000.

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