By Andy Sambidge
Dubai carrier says it will use proceeds of issue for 'general corporate financing purposes'
Emirates Airline said confirmed on Wednesday the successful close of a $1bn bond issue.
The Dubai airline, which initially proposed a $500m issue, said the bond issue would have a five-year maturity and will be listed on the London Stock Exchange.
Proceeds will be used for general corporate financing purposes, the carrier said in a statement.
“This latest issue from Emirates has received an overwhelmingly positive response from a very wide range of investors, which is indicative of our financial strength. This also shows a high level of confidence in our successful business model and growth plans,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group.
Emirates said it was able to achieve attractive pricing from a wide geographical spread of investors including banks, fund managers and insurance companies, following fixed income investor meetings in Hong Kong, Singapore, Abu Dhabi, Dubai, London, Geneva and Zurich.
The joint lead managers of the issue are Deutsche Bank, Emirates NBD, HSBC and Morgan Stanley.
Emirates, which reported record profit of AED5.93bn for financial year ended March 31, has a cash pile of AED16bn.