By Bernd Debusmann Jr
The financing facility will be used towards refinancing Flydubai's first sukuk issued in 2014
Flydubai successfully completed a $500 million 5-year term financing facility in mid-November, Emirates NBD has announced.
Emirates NBD Capital Limited and Noor Bank acted as global coordinators, while Emirates NBD Bank and Noor Bank joint underwrote the transaction.
The facility was launched to a general syndication on November 18. It will be used towards refinancing the carrier’s first Sukuk issued in 2014, which matures on Tuesday, November 26.
“The financing demonstrates our commitment towards supporting Flydubai,” said Ahmed Al Qassim, senior executive vice president and group head of corporate and institutional banking at Emirates NBD. “As a leading financial institution in the region, our aim is to provide innovative solutions to our valued clients in order to achieve their long-term objectives.”
Ghaith Al Ghaith, Flydubai’s CEO, said that the airline continues to explore ways to diversify sources of funding, “while at the same time optimising our cost of funding.”
“We are pleased to see the healthy appetite in the market that has enabled us to successfully raise the five-year term loan for $500 million to refinance our first Sukuk issued in 2014.”