Emirates, the world’s largest international airline, said on Wednesday it has mandated banks ahead of a possible sukuk issuance, thought to be worth up to $1 billion.
The airline said Citi and Standard Chartered Bank will act 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, JP Morgan and Noor Bank as joint lead managers.
They have been tasked with arranging a global investor roadshow to meet fixed income investors, commencing on Thursday. The airline did not say how much it hoped to raise but recent reports have suggested the sukuk could be for up to $1 billion.
Emirates said a benchmark sukuk (Islamic bond) issue, the proceeds of which to be used for general corporate purposes, may follow subject to market conditions.
Emirates said in a statement that it 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 $3.65 billion, over 50 percent of which has been in the sukuk format. Since 2010, Emirates has fully repaid six bonds, including sukuks, totalling $2.8 billion.
In 2015 Emirates also raised the UK Export Finance backed $913 million sukuk utilised for pre-funded aircraft financing, which was the largest ever capital markets offering in the aviation space with an Export Credit Agency guarantee.
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