Sukuk is expected to be at least $500m in size; will be airline's debut US dollar debt sale
Etihad Airways has set final pricing guidance of around 215 basis points above midswaps for its planned sukuk, expected to be at least $500 million in size, according to one of the banks arranging the transaction.
The Islamic bond, which once completed will be Etihad's debut US dollar debt sale, received orders of up to $1.3 billion, the bank said on Tuesday. Order books are expected to close as early as later in the day, it added.
Initial guidance, released on Monday, was in the low-to-mid 200 basis points range over midswaps.
HSBC, JP Morgan and National Bank of Abu Dhabi are the sukuk arrangers. They are joined by Abu Dhabi Islamic Bank, Dubai Islamic Bank and First Gulf Bank as bookrunners.
The bond is expected to price this week, as reported by Reuters on Monday.
Etihad Airways is rated A by Fitch.