Emirates brings $1bn bond issue to a successful close
02 Jun 2011
Dubai: Emirates on Wednesday announced the successful close of its US dollar "Reg S" bond issue at $1 billion.
The unrated issue will carry a coupon of 5.125 per cent per annum fixed, payable semi-annually. It will have a five-year maturity and will be listed on the London Stock Exchange.
"This issue from Emirates has received an overwhelmingly positive response from a wide range of investors, which is indicative of our financial strength. This also shows a high level of confidence in our successful business model and growth plans," said Shaikh Ahmad bin Saeed al Maktoum, chairman of Dubai Civil Aviation and chairman and chief executive of Emirates airline and Group.
Emirates said it was able to achieve attractive pricing from a wide geographical spread of investors.
The cash injection comes even as the airline preparing to take delivery of two jets a month from next year, over the coming six years. Emirates said last year it would need more than $28bn through to 2017 for its fleet expansion plans.
The Dubai airline has just completed an agreement with three foreign banks for the financing of 10 wide-body, long-haul jets from Airbus and Boeing, worth $3 billion (Dh11.01bn) at list prices before discounts.
(See: Emirates settles financing terms for new acquisitions)