Emirates poised to conclude $600m Sukuk

Emirates poised to conclude $600m Sukuk
Emirates will also order some more A380s. It may go for around 40, which was the number Tim Clark, its president, said the airline could do with in an interview last year. It currently has around 40 in operation and another 50 on order.
Published: 18 March 2018 - 7:18 a.m.
By: Alexander Pieri

Dubai-based airline Emirates has concluded the successful execution of a $600m sukuk or more commonly known as Islamic finance issuance.

Details of the sukuk state that the issuance of the Trust Certificates, which is in the principal amount of $600m will be repaid over a period of 10 years with legal maturity set for March 2028.

Funds generated from the issuance will reportedly be utilised across several areas of the corporate’s infrastructure, such as aircraft financing and working capital.

With the date of issue set for the 22 March 2018, the certificates were priced back on 15 March at a profit rate of 4.50%, which equated to 183.2 basis points over the five-year USD Mid-swaps. The certificates will be listed and traded on the regulated market of the Irish Stock Exchange and on NASDAQ Dubai.

Nirmal Govindadas, Emirates senior vice president, Corporate Treasury said: “We are pleased with the level and quality of interest in this Sukuk issuance. Emirates continues to take a diversified approach to our long-term financing strategy and today’s issuance confirms the confidence of international and regional investors in our strong track record as well as resilient and profitable business model.”

To help facilitate the sukuk, Citi and Standard Chartered Bank served as global coordinators and joint lead managers. They were assisted by Abu Dhabi Islamic Bank, BNP Paribas, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, J.P. Morgan and Noor Bank as joint lead managers.


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