Emirates, the world’s largest international airline, has mandated Citi and Standard Chartered Bank as Global Coordinators and Joint Lead Managers, along with 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 to arrange a global investor roadshow to meet fixed-income investors, commencing on 8 March. A benchmark Sukuk (Islamic bond) issue, the proceeds of which to be used for general corporate purposes, may follow subject to market conditions.
Emirates has always taken a diversified approach to financing its new aircraft deliveries and business growth. The airline operates a solid business model, which is combined with a track record of profitability, steady growth and strong credit history. Emirates continually looks for innovative financing opportunities in the global markets and is looking forward to working with lead bank partners on this latest transaction.
Emirates has tapped the debt capital markets with four corporate issuances since 2011 raising over USD 3.65 billion (AED 13.4 billion), over 50% of which has been in the Sukuk format. Since 2010, Emirates has fully repaid six bonds, including sukuks, totaling AED10.4 billion (U.S.$2.8 billion).
In 2015 Emirates also raised the UK Export Finance backed US$913 million Sukuk utilized for pre-funded aircraft financing, which was the largest ever capital markets offering in the aviation space with an Export Credit Agency guarantee.
Through innovative structures, over the period covering approximately 10 years up to 31 March 2017, Emirates has accessed the conventional debt capital markets and Islamic funding for 8% of all the Company’s funding needs. The airline also utilizes operating leases, commercial financing, and European export credit agencies and the United States Export-Import Bank backed financing as part of its well-diversified sources of liquidity