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Thu 9 Jun 2016 12:48 PM

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Emirates announces $1 billion bond repayment

Airline intends to repay $111 million later in June ‘from own cash reserves’

Emirates announces $1 billion bond repayment

Emirates has repaid a bullet bond valued at $1 billion (AED3.673 billion) and plans to repay another bond worth SGD150 million ($111 million) later this month, the airline said on Thursday.

The first bond had a maturity date of June 8 and was raised in 2011 to address Emirates’ working capital requirements, it added.

The Singapore dollar bond was originally raised in 2006. The airline said it was repaying both bonds from its own cash resources, ‘reflecting its robust financial position’.

Emirates last month reported its highest ever profits for the year ending March 31 2016 – with $2.2 billion (AED8.2 billion) of profits, up from 50 percent last year.

It also closed the 2015-16 financial year with AED14.1 billion ($3.8 billion) of cash flow from operating activities.

By the end of June, Emirates will have repaid six sukuks in full over the course of the last five years, totalling $2.84 billion (AED10.4 billion), the airline said on Thursday.

It said it raised $7.3 billion (AED26.9 billion) for aircraft financing in the last financial year and has committed offers to finance deliveries for 2016/17.

Emirates’ chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said: “The repayment of these bonds illustrates Emirates’ continued ability to access international funding and garner support from financial markets and institutions.

“Emirates has a solid track record of meeting its financial commitments, underpinned by the airline’s overall financial strength. Tapping into our own cash reserves to repay these bonds is reflective of our strong financial position and prudent approach to liquidity.”

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