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Emirates launches USD1bn sukuk

13 Mar 2013 05:26 GMT   التعليقات ()       إضافة تعليق       طباعة       إرسال لصديق

Tuesday, Mar 12, 2013

Dubai: Emirates airline on Tuesday launched a $1 billion amortising Islamic bond, or sukuk, according to newswires quoting arranging banks said.

Maturing in 2023, the 10-year sukuk carries an average weighted life of five years and was launched at 300 basis points over five-year midswaps, according to the reports, stating it was at the tighter end of pricing guidance.

The move — the second bond sale for Emirates this year — comes a week after Emirates said it mandated banks to arrange a potential dollar-denominated, benchmark sukuk sale subject to market conditions.

The six banks mandated as lead managers for the sukuk include Citigroup, Standard Chartered, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Dubai Islamic Bank and ENBD Capital.

Asked if liquidity is back into the market, analyst Andrew Charlton of Aviation Advocacy, told Gulf News: “I do not think that the liquidity ever left the market, provided you are a good risk. Ex-Im has been lending, and good airlines have been borrowing. The trick is to not be tricky and to have a good story.”

Echoing his view is Peter Morris, chief economist at aviation consultancy, Ascend, as he says: “For good assets with sound borrowers there is not a problem.”

Emirates last tapped debt markets in late January this year when it issued a $750 million, 12-year amortising bond. The world’s largest airline by international traffic, recently said it expects an 18-20 per cent increase in sales this year.

By Shweta Jain Senior Reporter

Gulf News 2013. All rights reserved.

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